Alan Greenspan: The Fed Didn't Cause The Housing Bubble

Wall Street Journal:

We are in the midst of a global crisis that will unquestionably rank as the most virulent since the 1930s. It will eventually subside and pass into history. But how the interacting and reinforcing causes and effects of this severe contraction are interpreted will shape the reconfiguration of our currently disabled global financial system.

There are at least two broad and competing explanations of the origins of this crisis. The first is that the "easy money" policies of the Federal Reserve produced the U.S. housing bubble that is at the core of today's financial mess.

Read the whole story: Wall Street Journal

Comments

[iSeeDumbPeople]

Yes. The Fed DID cause the housing bubble.

http://solari.com/blog/?p=2293

[Which-Ways-Up]

Alan tries so hard, but falls so far. I almost feel sorry for the old man.

http://which-ways-up.com/2009/03/alan-greenspan-attempts-to-cover-own-ass/

[Ron Lajoie]

All praise and hail to our government. Our new president has had nothing considring he is in offices than two months to "heal" our economic crisis - a crisis that started with the Big Bush. Boy do the repubs have a news flash coming to them!!!!!

[Maschine]

Hey AL, if I want your opinion I'll give it to you, now shut up and retire already.

[dashboard]

The credit mess explained in all its glory below. At the least, Greenspan was an accessory to the mess by allowing free flowing unregulated credit occurred, the belief housing prices would neve decling and thumbing his nose at all the shenanigans going on with subprime loans and the bogus instruments that were financially engineered, so banks, and insurance firms could get their greedy hands on.

http://vimeo.com/3261363

[royevatom]

There has not been this kind of arrogance since the Nazis ruled most of Europe. It really is to bad that there won't be much accountability. It is easy to see that to pursue these people legally would just turn into years of litigation and deal making because we have allowed the laws in this country to become just as convoluted as everything else. I don't like Greenspan. I think he is stupid, I always have. It just may be true.

[magibrotherhood]

the fed reserve is a parasitic "middleman" that scoops up obscene profits by lending the U.S. it`s own money. It is a PRIVATE cabal run NOT by Americans, but by international banking/financial entities who have no alligiance to America per se

[sposton]

Greenspan is actually correct but not guiltless. The real culprit are indeed the structural imbalances caused by the globalist "free trade", but so few economists wish to admit it. I guess Greenspan is willing to cross the line in his own defense.

[rabiddog6708]

Greenspan kept interest rates ridiculously low for a long time and resisted regulation. He was enabler of the housing bubble. His legacy will be forever tainted with it.

[magibrotherhood]

he knew about the toxic derivatives and enabled their use by opposing stricter regulation of the mortgage instruments-----he`s GUILTY .

[IndianaJohn]

Greenspan said the Taylor Rule no longer applies and raising interest rates would not have helped, but he does not say why he didn't at least give it a try. We'll never know now since he didn't raise rates, but he could at least tell us what it was he had in mind when he didn't bother to try.

[deepfreezevideo]

Greenspan acts like he still has a leg to stand on.
It would be funny if it wasn't so dangerous.

[freethinking moderate]

The Fall of Rome eventually subsided and passed into history. Anyone know of any long lasting ill effects?

[hawkseye]

See Phillip Taylor's post below on Greenspan's culpability.

[Rule Of Law]

To everyone: Please listen to today's Guns and Butter on public radio--

http://www.kpfa.org/archive/id/49073

For those of you who have perhaps wondered to yourself, or even chanced to do so here, about why our new president has surrounded himself with the same players who plunged the world into chaos,this interview brings all the loose ends together.

[spinns17]

there all at fault.