Greenspan blamed for subprime crisis

[greekfire]

Perry has a point. If you want to dance, you have to pay the band. Blaming Greenspan now is nothing but plain old finger pointing. They should have said something 2 or 3 years ago, after we had weathered the dot com but and 9/11, and none of this would have happened. Instead, they let him and the FED over-prime the pump until it was too late. I also don’t think you can blame all the sub-prime lenders and brokers. They weren’t the ones who lied or overstated their income. That’s not to say that there weren’t some unethical lenders and brokers out there, however.

[kewp]

“The galling thing about this is that there are a lot of policy makers who should have known how big a risk they were taking by reducing the interest rates so much and injecting so much liquidity into the market (M3).”

I hear that.

While there is *much* blame to go around, I generally feel the focus should be directed upwards. Its guys like Greenspan that really should (need actually) to know better. Heck, its was his friggen job to know better!

Whats sad is every single FB is gonna get smacked much harder in the end than Greenspan, whom is really has not much to lose from the mess he made. Unless he has a bunch of investment properties bought with ARM’s!

[Happy renter]

I disagree bailing out the REIC either! People should be responsible for what they signed and borrowed.

I disagreed with the low 1% fed funds rate a few years ago, not only now. We had NO vote since the Fed made the decision. I assume all the Fed’s memebers were ones of the smartest and most knowelgageable people in finance. Most of us here could predict the housing bubble, but the Fed’s members could not. Do you think they were qualified being the Fed’s memebers?

We can’t go back to the past, but we can’t forget the past. If we don’t realize the cause of the bubble, we will let the policy makers (few people) to commit the same error and create another bigger bubble for the whole population. We have not vote, but I hope they can hear our voices.

I know a lot of people support Greensapn. My friend said he was the “King of Enocomy” and the “best chairman” in the history. He lowered the interest rate and made all Americans had better lives and got rich from their houses!

I totally respect people’s own opinions! We all have the rights to express our own thoughts.

[equalizer]

Who is the “they” that should have said something? We did, some journalists (Barrons) did, but no one listened. Greenspan and The Fed should be held accountable for the record because most Americans have been force fed the “Maestro” genius label. This lending affected all home buyers, not just ARM borrowers, because it created artificial shortage for homes that sent prices skyrocketing.

It is not finger pointing, it is setting the record straight. If none of this would have happened with better leadership, why not let the public know that. It won’t help anyone now, but it may force future leaders to remember that we will NOT be ignored. Stand up.

[CostaMesa]

IIRC, the US economy showed signs of a serious recession at the end of ’01 and early ’02.

Anyone that blames Greenspan and doesn’t stop to consider that Bush had far more to gain from the creation of the housing bubble than anyone else did is fooling themself. Bush41 didn’t get a second term because of the ’91 recession and Bush43 made damn sure that he wasn’t going to be hung by the same rope his dad got hung by.

It’s all connected…

[equalizer]

CostaMesa is correct

Greenspan wanted to goose the economy and protect the banks, regardless of the consequences.

[hipmatt]

Greenspan and Bernake are responsible for the complete DESTRUCTION of the US $$$$$ and high inflation. Bernake and his groupies don’t seem serious about fixing this problem.

Greenspan + SubPrime Lending (and lack of lending standards)+ Really dumb Americans + Speculators + Mainstream Media are responsible for any housing or lender related crisis as well as the hugely inflated home values.

I am as much against gov. regulation as most any republican, but I do feel that there needs to be regulation in loans for homes. We need to get back to down payments, fixed rate, and away from int. only and 40 year loans. For those who buy a second home or speculators, a higher down payment should be required. This will greatly stabilize housing prices(lower them initially), and you will still see nice appreciation.

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