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I agree Greenspan was a contributor but not just because of asset bubbles. 1) Clinton approved the fed to mess around with substitution and other ways to falsify inflation 2)Others allowed falsification of real unemployment. This made them lagging or just incorrect measures making it harder to see real trends.
Oct 13 00:55 am
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All Comments by Moon Kil Woong »Greenspan Is to Blame for Today's Problems [View article]
Although the fed should have seen the mass inflation of assets during the last bubble, the SEC is mainly to blame for not regulationg a $41 trillion dollar CDS monster. In fact Cox seemed not even to be aware of it even though it was the main driver of asset inflation for the last 6 years.
And Paulson, being complicit in shorting the housing market while under Goldman is also to blame for lack of impartial oversight.
Bad show for everyone all around. But Greenspan get's the cake for inspiring giant spreads in mortgage bonds by allowing 1% fed funds while they wrote flexible ARM mortgages that everyone knew would go to 6-8% for people who couldn't even pay rent.