Strike me from this blog if I ever post anything so boring and out-of-my field as this again - but what if all these years the other unwarranted, inflationary bubble from the early 21st century was total and complete faith in Alan Greenspan?“I was aware that the loosening of mortgage credit terms for subprime borrowers increased financial risk,” Mr. Greenspan wrote in his recent memoir, “The Age of Turbulence: Adventures in a New World.” “But I believed then, as now, that the benefits of broadened home ownership are worth the risk.”
But so much so that it required zero regulation? You couldn't have dialed it back a little tiny bit?
An examination of regulatory decisions shows that the Federal Reserve and other agencies waited until it was too late before trying to tame the industry’s excesses. Both the Fed and the Bush administration placed a higher priority on promoting “financial innovation” and what President Bush has called the “ownership society.”nytimes: Fed Shrugged as Subprime Crisis Spread
I'm sorry, that was awful and boring, I know.
1 comment:
No, no--this is great stuff! Do not apologize for this post.
My favorite quote is the one where Greenspan says that the Fed is equipped to monitor/police lending. Um . . . take your wrinkly, affluent dongus out of Andrea Mitchell for a minute and do your job.
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