Memo to Hillary - Re: Alan Greenspan in charge. Are you nuts?

[autorank]

(Thanks JT Frog for the info.)

Memo to Hillary - Re: Alan Greenspan in charge. Are you nuts?

To: Hillary
From: A citizen
Re: Letting Alan Greenspan clean up the mess that he made

As a citizen, I'm interested in why the U.S. ecnomy is collapsing, particularly the housing market. I did a little research and wrote this. I'm sure you'll understand why it is TOTALLY UNACCEPTABLE to have Alan Greenspan in charge of anything related to the housing crisis SINCE HE HELPED CREATE IT.

From, The Money Party (4): Money Party to Citizens – Drop Dead! By Michael Collins
http://www.scoop.co.nz/stories/HL0802/S00005.htm

But wait! Apparently the paid flacks forgot that the financial deity, former Federal Reserve Chairman Arthur Greenspan, endorsed the housing bubble in no uncertain terms. In 2004, Greenspan told a credit union association crowd that "the refinancing phenomenon" had been supportive for the economy and that the use of home equity "helped cushion" declining stock prices. Then Greenspan showed his supposed genius with this advice to home buyers and owners:

"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage. To the degree that households are driven by fears of payment shocks but are willing to manage their own interest rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home." Understanding household debt obligations, Federal Reserve Board, Feb. 23, 2004

The message was clear. Get an ARM!

Here's the back story. Greenspan got first rate analysis in 2001 from Ned Gramlich, a widely respected economist and Federal Reserve Governor. Gramlich warned, "that a fast-growing new breed of lenders was luring many people into risky mortgages they could not afford." Greenspan dismissed this advice and other warnings that followed. Predatory loan offerings; not to worry. It's all good.

The New York Times reported this epitaph of the Greenspan housing boom from a 2006 Gramlich speech to the Federal Reserve:

"Why are the most risky loan products sold to the least sophisticated borrowers? The question answers itself - the least sophisticated borrowers are probably duped into taking these products." New York Times, Dec, 18, 2007

These facts are behind the FBI's investigation into the "housing boom." Check out the London Times Online:

"The FBI is investigating every level of the conspiracy that it believes perpetuated the housing boom…"
TimesOnline Jan. 31, 2007

Hillary, have you lost your mind? Alan Greenspan?!?! Please!


Greenspan's Folly Nathan Rein CC

[girl gone mad]

1. It just goes to show..

how out of touch HRC is. She's a member of the elite Washington/Wall Street crowd that created this mess.

[formercia]

2. Herr Doktor Frankenstein put in charge of reconstructive surgery

With a testimonial from Frau Bucher.