Playing Truth or Dare with Alan Greenspan

As an exercise for readers, please tear apart the illogic in the following dubious statements by ex-Fed maestro Alan Greenspan. The subject, of course, is the ongoing housing/mortgage/subprime/economic meltdown in the U.S.:

  1. “The housing bubble is not a reflection of what we did, as it is a global phenomenon.”
  2. The collapse of the U.S. subprime market “was a shocker because no one expected it”

He’s all yours, folks.

[via Bloomberg]

Related posts:

  1. Playing Truth or Dare with HP’s Patricia Dunn
  2. The Somewhat Shorter Alan Greenspan
  3. Alan Greenspan Needs Work
  4. Roil Markets. Be Alan Greenspan for the Day.
  5. Alan Greenspan Quote du Jour

Comments

  1. dub dub says:

    Maybe he is attempting to manage his career so his picture ends up on a recirculated 500 dollar bill ;)

  2. Dave says:

    my response
    1. Greenspan’s bad policies created(facilitated)
    Global housing bubble.
    2. Fed kept rates too low (1%) for too long, which encouraged all kinds of speculation, mispricing of risk, etc, which led up to sub-prime problems. Greenspan encouraged sub-prime borrowers to over-extend themselves & praised “innovative” lending products.

  3. new says:

    Pleeeeeeeeze. Doesn’t anybody remember back a mere 7 years ago? Alan “Shrugged” Greenspan “saved” the day after the dotcom bust by busting down fed rates. He knew exactly what he was doing and for maybe 18 months it wouldn’t have been an imprudent action. Did he know what he was setting up and when did he know it? Well, If I figured it out at the beginning of 2002 and if he was clueless maybe i should be–or anyone can be–chair of the fed.
    Give me Paul Volcker any day of of the week, month, year. He’s still out there talking real while GreenBoy is signing books while wearing an iron jockstrap.