Friday, Sep 28, 2007
Greenspan: "It's going to turn, it's got to turn"
Guardian: Brown advisor predicts 'bubble will burst'
Commentators believe prices began to slow at the end of last month and probably halted after the Northern Rock crisis. Greenspan: "A lot of the two-year fixes are beginning to unwind, and the teaser rates are going. It's going to turn, it's got to turn," He also warned that Britain was more vulnerable to the effects of the credit crunch than the US because it had a higher level of adjustable-rate mortgages.
Posted by confused76 @ 03:39 PM (570 views) Add Comment
2 Comments
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1. trough2010 said...
"It's really not something that central banks any longer have control over." (Greenspan talking about low real interest rates) LOL- as if central banker's monetary policy did not influence real interest. What a load of spin! Greenspan has to come to terms with the fact that HE too is to blame for the post-Cold War (low) real interest rates that have generated so many bubbles around the globe. This guy is really in denial and still thinks he's a once-in-a-generation genius.
2. whiteknight said...
TO DO LIST:
1. Change central bank from purely inflationary target. Proved to be flawed.
2. Call in CEOs of banks and remind them not to cause the financial system to fail for the sake of a slightly higher bonus. Remind them what could happen if they do.
3. Rename the "growth" of an economy to the "temperature" of an economy for important perception reasons. Specify a temperature that is suitable for the economy.
4. Make note that one shouldn't interfere in the market "teaching" people how to invest. If this happens earlier then people lose less as part of an incremental lesson rather than everything in a hurricane.
5. Make note that some things happen in a recession that aren't bad. ie. people get efficient , lean and mean ready for the next boom period.
6. Remove "print money" as a recession avoidance tool from the TO DO list.