Smoking gun that Greenspan planned Housing bubble...

[dixiegrrrrl]

Denninger reports the smoking gun, quoting a 2002 Paul Krugman article.

"To fight this ( the 2001 ) recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it,
Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.

Judging by Mr. Greenspan's remarkably cheerful recent testimony, he still thinks he can pull that off.
But the Fed chairman's crystal ball has been cloudy lately; remember how he urged Congress to cut taxes to head off the risk of excessive budget surpluses? And a sober look at recent data is not encouraging....

Bear in mind also that government officials have a stake in accentuating the positive. The administration needs a recovery because, with deficits exploding, the only way it can justify that tax cut is by pretending that it was just what the economy needed. Mr. Greenspan needs one to avoid awkward questions about his own role in creating the stock market bubble.

Full story and more revelations at link:
http://market-ticker.denninger.net/archives/1124-None-Of-This-Was-A-Mistake.html

[ThomCat]

1. If it can be proven that the financial fraud that created the housing

bubble was known and encouraged at the highest levels because they knew it would create the bubble and they wanted the bubble then that should result in criminal and civil lawsuits the likes of which the world has never seen.

Greenspan should be personally buried in so many lawsuits that his estate won't be able to dig their way out for generations.

x(

[MannyGoldstein]

3. Same as Torture

It'll be prosecuted ASAP.

Don't worry, be happy.

[JohnWxy]

5. Cheney administration's response: "Don't criminalize fascism."

Well, in their bizarro jargon: "don't criminalize policy differences."

[WCGreen]

2. Greenspan was nothing more than a shill for the financial interests

in this country...

As for the rest of us who were forced to live under the Greenspan socialism for the rich regime, well, omce again we are forced to bear the cost of his socialism for the upper crust and bare nakid capitalism for the rest of us...

[indepat]

4. Proud to long proffered on this board: Greenspan, a name that will live in

infamy. :P

[northernlights]

6. how about a class action lawsuit?

Why wait for the government to prosecute? How about a couple hundred million people each contribute a couple bucks to pay for the biggest contingent of pit bulls, sharks and pirahna lawyers ever seen. Against Greenspan and his "team."

I'm ready. The savings are down to the bitter end, but I can still come up with a couple bucks.

[xiamiam]

8. ive often wondered that myself...why cant we the people just get our own attorneys to prosecute for

war crimes and wall street..obviousy, i don't understand the legal system but it seems like a good idea to me

[glitch]

7. Ah yes, Ayn Rand's favorite disciple, Alan Greenspan.

Well, maybe he wasn't her favorite but he no doubt wanted to be.

http://www.commondreams.org/view/2008/10/25-6
http://www.nytimes.com/2007/09/15/business/15atlas.html?_r=1&pagewanted=print

So clever to put him in charge of our economy.