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Greenspan: Fed Couldn't Stop Housing Bubble

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As if Greenscam didnt know:

who says low interest rates says also predatory lending... booms are all fueled by credit whatsoever. This is very well documented on http://www.moneyfiles.org, a site tracking the global crash.

titanic.jpg

Greenspan: Crisis 'an accident waiting to happen'

September 17 2007

(Fortune Magazine) -- Alan Greenspan's memoir arrives with remarkable timing for two reasons. One is that at a time like this, with financial markets in upheaval, we yearn for guidance from the oracle who presided over 18 years of relative peace and prosperity in the U.S. economy.

The second is that a wave of revisionist thinking holds that the reign of Greenspan may not have been so great after all, that he bears some responsibility for the twin bubbles of dot-com mania and the recently deflated housing boom.

Former Federal Reserve Chairman Alan Greenspan says housing prices will fall 'inexorably lower.'

In The Age of Turbulence (The Penguin Press, 505 pages), Greenspan gives his side of the financial saga, holding forth with his trademark wonky curiosity about statistics and the appreciation of human nature that he learned from author Ayn Rand (see Daniel Okrent's review).

In an interview with Fortune managing editor Andy Serwer, the legendary Fed chief gives an up-to-the-minute diagnosis of the financial situation, his outlook on housing prices, a prescription for the coming Medicare crisis, and his take on the Bush

MORE

http://money.cnn.com/2007/09/16/magazines/...sion=2007091708

and

Greenspan: Fed Couldn't Stop Housing Bubble

17 Sep 2007

he 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.

"We had no control, that I could see, which would have made any difference in the extent of the bubble that was emerging," he said. "And we concluded, as we did with respect to the stock market bubble in the 1990s, that … as I pointed out previously, every time we tried to tighten … we weren't trying to knock the stock market down. We were reacting to inflationary pressures.

Greenspan denied that the Fed inflated the economy under his leadership, saying that rate policy was reacting to price pressure.... MORE

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

INSIGHT

Does Marketing 'Envy' Cause Poverty?

8/25/07

Until 9-11, and its ensuing epiphany, I wasn't much interested in economics. Then I quickly grasped that studying the arcane art of money and power was much more entertaining than watching any Hollywood thriller ever produced. Before stating anything else further, my belief is that economics and philosophy complete one another. Although some might argue otherwise, a diatribe as to whether 'Envy' belongs to the realm of philosophy or economics doesn't serve any real purpose at this stage. The bottom line is that 'envy' is detrimental to wallets and portfolios. As a matter of fact, in the Western culture, the world 'Envy' doesn't sound as bad as 'Jealousy'. In many instances 'envy' is even perceived as flattering. It has little to do with its initial meaning, which you will see can be highly threatening.... The common man has no idea about the true meaning of 'inflation'. This is a world issue, no matter the culture or race. They applaud every time a lawmaker promises to deliver more IOUs. As a result there are now 600 T-R-I-L-L-I-O-N in unfunded liabilities at all levels of the global economy.

MORE-LONG

http://www.moneyfiles.org/sbk06.html

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