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 Post subject: Greenspan's role in the sub-prime mess
PostPosted: Wed Aug 22, 2007 1:19 am 
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Here is an interesting article about how the Federal Reserve creates assets bubbles with its cheap money policies. It creates bubbles that it has to eventually fix, most notably to save its pals on Wall Street. This article implies that Greenspan could have done something about the sub-prime debacle earlier on, but decided against it. Lest we forget the finance guys are making money and trouble when these bubbles happen.

http://www.bloomberg.com/apps/news?pid= ... refer=home

Here is the interesting quote from the article:

Greenspan's culpability for the financial contagion that the U.S. subprime-mortgage mess is sending Asia's way is almost beside the point. The first hint Greenspan's fingerprints were on this crisis came in June, when former Fed colleague Edward Gramlich told the Wall Street Journal that Greenspan had opposed a proposal that would have boosted oversight of subprime lenders.

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PostPosted: Wed Aug 22, 2007 9:30 am 
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The private Federal Reserve Banks are ordered by Congress to supervise banking practices to insure protection of the average citizen not the bankers. And according to a blurb in that article that is exactly where Greenspan failed the public. He should be arrested

Greenspan's culpability for the financial contagion that the U.S. subprime-mortgage mess is sending Asia's way is almost beside the point. The first hint Greenspan's fingerprints were on this crisis came in June, when former Fed colleague Edward Gramlich told the Wall Street Journal that Greenspan had opposed a proposal that would have boosted oversight of subprime lenders.

http://www.bloomberg.com/apps/news?pid= ... refer=home.

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