Alan Greenspan was a guest on The Daily Show with Jon Stewart recently, mainly to promote his new book The Age of Turbulence but conveniently after the recent rate cut. It was amusing seeing Greenspan in the hot seat. Via the Bogleheads.
Update: Having some problems with the embedded video, so here is the direct link to the clip.
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Although he has come under sharp criticism with the way he handled things after 9/11 and keeping the rates low for so long, I have a lot of respect for Alan Greenspan. I think he is a very interesting person, and once the book comes down in price, I will purchase without a doubt. I’ve already seen them on Amazon for 20.00. I may get it there.
He is a very likable person, and given the circumstances I think that we had two choices, face a crippled economy or piggy back it on the housing market. It’s not his fault that the banks gave Ninja(No Income No Job or Assets) Loans. He made money available, it was the mortgage brokers, banks and appraisers that took advantage and ballooned the market.
And some will try and argue the banks involvment saying “The banks didn’t know.” For one, the bank does know, when is a two bedroom one bath 1,800 sq ft house worth 400,000.00? Why did banks make loans like that? Because they packaged it up all nice and neat as high yield securities and dumped it in the European market. They got their cut and got rid of the risk. So I don’t blame Greenspan, he did what he needed to do.
What it ultimately comes down to is the consumer being responsible. Read your contract, why would anyone in their right mind take an interest only for 5 years, then full on payments thereafter? They didn’t read their contract. People know if they can afford a house or not. I don’t feel sorry one bit for the housing market right now. I have no idea why these people were looking for home loans, maybe they should’ve gone ferrari shopping while they were at it.
Darnit! I posted a great comment(IMO) on this thread and it’s not here. Now I have to remember all of the clever things I said.
I guess I was just waiting on Jonathan to moderate it. Ha, well, at least I blew this thread up. Now it’s going to look really popular!
It’s amazing how much credit he gets in the media when he was such a bad fed chairman.
That’s why he’s going on the media spree of the century. He’s going to CYA before the economy tumbles under the weight of twin-deficits. Bernanke will get all the blame, but he’s not good either.
Where’s Volker?
Democracy Now! had a great hard hitting interview with him: http://tinyurl.com/2fnuz6
Also: Paul Krugman really slams him hard in:
Sad Alan?s Lament http://tinyurl.com/24dqos
It’s funny how Greenspan won’t accept any responsibility of his actions. It’s everyone else’s fault.
Hotseat? Stewart looked like an idiot asking such sophomoric questions. Stewart is funny sometimes but he is no intellectual. And it really shows up when he is in the presence of someone who knows what they are talking about.
I understand people’s frustrations but what else would Greenspan have done? He had two options, do nothing and let the economy crumble, or piggyback it on the housing market so that some recovery could occur and lessen the damage. I respect everyone’s opinion on here, and I know that the current housing crisis has put a sour taste in many people’s mouths but I don’t think there was much else to do.