So greenspan thinks this is only the beginning…

[Alex_angel]

I cannot believe that no one has posted this yet. Greenspan quotes that this is only the beginning of the housing slump and that homes are going to go down further in price. He then said that the prices will level and we will recover but the fact that he believes that homes are over priced shows that a correction of some sorts is needed to get housing back to where it should be.

[Bugs]

The fact that he’s commenting about this within the national context is quite a reversal for him.

In the death of 1000 cuts this is cut #268. Rather than being an actual loss or problem it is a comment that contributes to the market psychology.

[aztecnology]

Greenies herculean efforts could not prevent the housing bubble….

Greenspan: Housing Bubble Was Unavoidable
The Federal Reserve tried to curb the explosive growth in the U.S. housing sector under Alan Greenspan’s tenure, but each time it tried to raise long-term interest rates it failed, the former Fed chief said.

“In 2004 we tried to raise mortgage rates by moving the 10-year Treasury note up and we failed,” Greenspan told CNBC, adding that the Fed failed again in 2005 and would have failed had it tried in 2002.

2 videos with this link

http://www.cnbc.com/id/20817941

[(former)FormerSanDiegan]

Who cares what he says. Look at his track record.

1. Irrational Exuberance
Greenspan also said that stocks were highly priced as the result of irrational exuberance on December 5, 1996. The S&P 500 closed at 744.38 that day. It never closed below 720 after that speech. Today the S&P 500 is about 1470.

That’s a doubling in about 10 years. Via rule of 72 … 72/10= 7.2 or a 7.2% compounded annual rate of return. Not too shabby for a period that included the worst bear market in 30 years.

2. ARM loans
Suggesting that consumers might be better off with ARM loan during a speech in 2004. My guess is that ARM loans o0riginated within 24 months following this speech will experience the highest rate of foreclosure in a generation.

[patientlywaiting]

Greenspan is acknowledging what we already knew. BFD!

And Iraq is really about oil. Wow, that’s a big surprise!

[LookoutBelow]

He must've had a bad dream last night….This new found "Honesty and candidness" is laughable…..I think its a tired old man who fucked this country and the worlds economy ….Now he's trying to deal with the hate that will come from it…it is directed RIGHT at him…He is human after all and he's worried about his "Legacy" now….Sorry "Easy Al"…your a buffoon and people will piss on your grave…..You fell for your good press….Maestro, Genius and other ingenious adjectives the crooked bastards on Wall Street called you…you FELL FOR IT !!!…Now accept the shame that comes with vanity…

[jficquette]

Great post!

[mixxalot]

Greenspan the anti-American

I heard some of the response he have on 60 minutes last night. This guy is EVIL. When questioned about what he invests in- he refused to give a real answer and not to back the US dollar. That proves he is a criminal and knew what was going on. I hope this guy rots in hades for what he has caused. Then again the FED is evil system of corrupt world bankers.

[balasr]

FSD, you said that the return was 7.2% compounded annually. Assuming a nominal 2.5% CPI (actually it was more 10 years back). over the 10 years, the inflation adjusted return would be 4.7%. If you look at Siegels book, “Stocks for the long run”, you’ll see that the long term compound real returns of the stock market have been 6.6%. So, Greenspan was right. The problem is that he didn’t take any action. If he had, we could have averted many bubbles.

[CMcG]

Anybody else catch the video (still up on signonsandiego) of him at a book signing? Some guy, yelling and pointing, shouts, “This guy is a criminal! He destroyed our country!” He is escorted out of the store.

[(former)FormerSanDiegan]

FSD, you said that the return was 7.2% compounded annually. Assuming a nominal 2.5% CPI (actually it was more 10 years back). over the 10 years, the inflation adjusted return would be 4.7%. If you look at Siegels book, “Stocks for the long run”, you’ll see that the long term compound real returns of the stock market have been 6.6%. So, Greenspan was right. The problem is that he didn’t take any action. If he had, we could have averted many bubbles.

Yes, the past decade has been a period of under-performance for stocks. It also included the worst bear market in 30 years. However, even at the depths of that bear market, stocks were always above the point where Greenspan uttered the words irrational exuberance.

If in 1999 I said that housing is due for a correction because the market is irrational, would you think I made a good call.

[mixxalot]

Do you have the link to the video of Greenspan book signing?

I was unable to find it. He is evil as is the FED and world banker slime. They will destroy America.

[CMcG]

mixx, I hope this link works:

http://video.syndication.msn.com/v/Legacy.aspx?partner=en-ap&t=s1179420228000&ns=VC_Supplier&p=CADIU&f=CADIU&mk=en-ap&sf=ActiveStartDate&sd=-1

Sorry, I don’t know how to make the link shorter. If this doesn’t work, go to signon, click on video, click on U.S., and search for “Greenspan.”

[patientlywaiting]

Greenspan interview on Fresh Air.

http://www.npr.org/templates/story/story.php?storyId=14500893

[mixxalot]

Cool! Hey why is it that instantly whenever someone wishes to question debate or make a comment against any of the illuminati figures such as Greenspan, Bush or Kerry that either they are arrested, tazered, or removed by police?

What happened to free speech in this country?

[Author]

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