tag:blogger.com,1999:blog-13164186.post4015931860737365172..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: Alan Greenspan's conflicting arguments to avoid responsibilityDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-13164186.post-71424750284108220252009-03-24T12:20:00.000-04:002009-03-24T12:20:00.000-04:00The fact that long-term rates remained high is abs...The fact that long-term rates remained high is absolutely irrelevent.<BR/><BR/>By keeping short-term rates low, he created incentives to lend.<BR/><BR/>For banks, the Borrow-low-Lend-high equation helped pump liquidity/funding into the housing market.<BR/><BR/>Greenspan is a clown.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-65269859333268272912009-03-20T11:07:00.000-04:002009-03-20T11:07:00.000-04:00Greenspan's irrelevant now. It always boggled my ...Greenspan's irrelevant now. It always boggled my mind the way his opinion was taken as gospel. Now he's finally been revealed as a fool or a fraud, he's just an old guy who has some weird ideas. His career is over and he'll be dead and gone soon. Hopefully he's the last Fed chairman to base his economic philosophy on Ayn Rand.<BR/><BR/>And as far as his "housing is most sensitive to long-term rates", that doesn't apply when mortgages are commoditized on a vast scale and traded as securities. The low interest rates he maintained drove capital into the new, poorly regulated area of MBS's and that capital drove the housing bubble, the CDS's that "protected" them and the financial collapse that followed. Greenspan's a joke.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-85221224894709879122009-03-20T11:00:00.000-04:002009-03-20T11:00:00.000-04:00"...and housing is most sensitive to long-term rat..."...and housing is most sensitive to long-term rates."<BR/><BR/>was that the case during the bubble or was that just the conventional thinking pre-bubble? were all those bubble era ARMs based on long term rates?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-10214469856132525592009-03-19T21:51:00.000-04:002009-03-19T21:51:00.000-04:00Greenspan can't talk his way out of history.Greenspan can't talk his way out of history.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-38908339218288967122009-03-19T09:05:00.000-04:002009-03-19T09:05:00.000-04:00Prince William County had a massive bubble, and th...Prince William County had a massive bubble, and the sewer-level values in its future are justified.Anonymousnoreply@blogger.com