Writing in the WSJ, Alan Greenspan argues
that the Fed did not cause the housing bubble because the
historically low mortgage rates that triggered the boom were not
a result of Fed rate cuts, but of changes in the global economy.
It's worth noting that during the height of the housing boom,
Greenspan denied that a national housing bubble was possible.
Here's what he had to say at an October 19, 2004
speech at America's Community Banker's Annual Convention:
Overall, while local economies may experience significant
speculative price imbalances, a national severe price
distortion seems most unlikely in the United States, given its
size and diversity.
What else did you expect from Andrea Mitchell's husband? Did you
really expect him to 'man up'?
ECM| 3.11.09 @ 5:27PM
Alan 'Mo Money' Greenspan attempts to absolve himself of a huge
percentage of the blame and, thanks to our 'blame the banks/Wall
St./anybody but us' politicians, he's well on his way to getting
off scott free.
"Easy Al" maintains that it was worldwide low interest rates
which created the housing bubble.
OK. But as we know, the price of a commodity is directly related
to its availability. So my question to "Easy Al": where did all
that money COME from, which drove down the price of the money?
ruth| 3.11.09 @ 1:38PM
What else did you expect from Andrea Mitchell's husband? Did you really expect him to 'man up'?
ECM| 3.11.09 @ 5:27PM
Alan 'Mo Money' Greenspan attempts to absolve himself of a huge percentage of the blame and, thanks to our 'blame the banks/Wall St./anybody but us' politicians, he's well on his way to getting off scott free.
Willey| 3.11.09 @ 8:35PM
I'd love to see Barney frogmarched to jail.
dad29| 3.11.09 @ 9:09PM
"Easy Al" maintains that it was worldwide low interest rates which created the housing bubble.
OK. But as we know, the price of a commodity is directly related to its availability. So my question to "Easy Al": where did all that money COME from, which drove down the price of the money?
Al?? Al??