When he told folks in 2004 to get ARMs, he had the ideal solution for mopping up liquidity (via ARMs) and keeping the economy going, as folks would tap into equity to go on a spending spree. Consumer spending is 3/4 of our economy, and housing is the reason. AG had a temporary solution. Now he’s warning folks after the fact. It’s a little too late now Greenie!
I checked the Reuters article on AG’s speech, and here’s another excerpt (I’m just shaking my head!)
Asked whether he thought there was “irrational exuberance” in markets today, Greenspan said: “I would hesitate to use it in today’s context. Irrational exuberance, I think would be a stretch at this point.”
Here, AG, let me stretch you over my knee like a bad little boy and spank your little bottom for causing the bankruptcy and emotional pain for millions of Americans. That’s a stretch I could live with! I used to worship the guy, until I started reading about the economy…
