{"id":196631,"date":"2008-04-07T20:01:00","date_gmt":"2008-04-08T01:01:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/04\/07\/alan-bubbles-greenspan-the-i-didnt-do-it-kid-says-that-housing-is-not-his-fault\/"},"modified":"2008-04-07T20:01:00","modified_gmt":"2008-04-08T01:01:00","slug":"alan-bubbles-greenspan-the-i-didnt-do-it-kid-says-that-housing-is-not-his-fault","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/04\/07\/alan-bubbles-greenspan-the-i-didnt-do-it-kid-says-that-housing-is-not-his-fault\/","title":{"rendered":"Alan &#8220;Bubbles&#8221; Greenspan, the &#8220;I Didn&#8217;t Do It Kid&#8221;, Says that Housing is not His Fault"},"content":{"rendered":"<p>Yep, he&#8217;s claiming that the housing bubble, and subsequent bust <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/182ac7a4-03fb-11dd-b28b-000077b07658.html?nclick_check=1\">are not his fault<\/a>.<\/p>\n<ul>\n<li>He claims that evidence of any link between monetary policy and the bubble was \u201cstatistically very fragile\u201d.<\/li>\n<\/ul>\n<p>Let&#8217;s see, you nearly <span style=\"font-weight: bold;\">tripled<\/span> the money supply before you stopped publishing M3 data in 2006, and that is &#8220;fragile&#8221;.<\/p>\n<ul>\n<li>He Claims that he is, &#8220;puzzled why so many commentators seek to explain the US housing bubble in terms of Fed actions when many other economies with different central banks and different monetary policies also saw rapid house price gains.&#8221;<\/li>\n<\/ul>\n<p>M3 again baby, with all that money that <span style=\"font-weight: bold;\">you<\/span> created, it all had to go somewhere.<\/p>\n<ul>\n<li>Mr Greenspan says, it is only with hindsight that it looks like the US economic recovery was well enough entrenched before 2004<\/li>\n<\/ul>\n<p>Dude, that was you <span style=\"font-weight: bold;\">PIMPING<\/span> yourself to George Walker Bush for the election, so you would get reappointed.<\/p>\n<ul>\n<li>Mr Greenspan reaffirms his long-held belief that central banks cannot effectively \u201clean against the wind\u201d by setting monetary policy a little tighter than it would otherwise have been during asset price booms.<\/li>\n<\/ul>\n<p>Dude, you have actively <span style=\"font-weight: bold;\">pumped up and bailed out<\/span> every asset boom under your watch.  You engineered bailouts, either through monetary policy such as low interest rates, or <span style=\"font-weight: bold;\">directly<\/span>, as you did with the LTCM hedge fund.<\/p>\n<ul>\n<li>Mr Greenspan also takes issue with those who blame lax regulation by the Fed for allowing a serious deterioration in underwriting standards in the mortgage industry. The problem, Mr Greenspan argues, \u201cis not the lack of regulation, but unrealistic expectations about what regulators are able to prevent\u201d.<\/li>\n<\/ul>\n<p>Which is why you did your best to effectively dismantle Glass-Steagall <span style=\"font-weight: bold;\">back when Paul Volker was Fed Chair.<\/span><\/p>\n<ul>\n<li>The former Fed chief says the core of the subprime problem \u201clies with the misjudgments of the investment community\u201d. The scramble to invest in what were initially highly profitable subprime loans would have overwhelmed any regulatory effort to slow the growth of this sector, he claims.<\/li>\n<\/ul>\n<p>You allowed, scratch that, you <span style=\"font-weight: bold;\">encouraged<\/span> the repackaging of garbage into Byzantinely complex instruments, and you called them good.<\/p>\n<p>Regulators are <span style=\"font-weight: bold;\">more than able<\/span> to prevent this, you were simply <span style=\"font-weight: bold;\">completely unwilling<\/span> to take even the most basic advisory steps to do so.  Your whole hearted of so called financial innovations like &#8220;credit default swaps&#8221; which are too complex for <span style=\"font-weight: bold;\">the people who trade them<\/span> to understand is clear.<\/p>\n<p>The legacy of Ayn Rand, your mentor, is bad writing, ugly prose, and the impoverishment of all but the most dishonest.<\/p>\n<p>Thanks asshole.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yep, he&#8217;s claiming that the housing bubble, and subsequent bust are not his fault. He claims that evidence of any link between monetary policy and the bubble was \u201cstatistically very fragile\u201d. Let&#8217;s see, you nearly tripled the money supply before you stopped publishing M3 data in 2006, and that is &#8220;fragile&#8221;. He Claims that he &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,973,982],"tags":[],"class_list":["post-196631","post","type-post","status-publish","format-standard","hentry","category-corruption","category-economy","category-stupid"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/196631"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=196631"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/196631\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=196631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=196631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=196631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}