You’re right on about that quote. I thought he had advocated ARMS, but in re-reading the speech while he does not uniquivically advocate variable rate mortgages, Greesnpan does seem to imply that these are the best option for consumers
For example:
“American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage. To the degree that households are driven by fears of payment shocks but are willing to manage their own interest rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home.”
But you’re absolutely right that the media made a frenzy over the implication of his statements rather than paying much heed to the message itself.
