Greenspan: 'Credit tsunami' to have severe impact

[Moby]

But of course it will be the next President's fault.

http://news.yahoo.com/s/ap/20081023/ap_on_bi_ge/financial_meltdown_164
WASHINGTON – Former Federal Reserve Chairman Alan Greenspan says the current financial crisis is a "once-in-a-century credit tsunami" which will have a severe impact on the U.S. economy, driving unemployment higher.

Greenspan, who headed the nation's central bank for 18 1/2 years, says in testimony prepared for Congress that he and others who believed lending institutions would do a good job of protecting their shareholders are in a "state of shocked disbelief."

In testimony he was giving to the House Oversight Committee, Greenspan blamed the problems on heavy demand for securities backed by subprime mortgages by investors who did not worry that the boom in home prices might come to a crashing halt.

[Binky]

But of course it will be the next President's fault.

http://news.yahoo.com/s/ap/20081023/ap_on_bi_ge/financial_meltdown_164



Of course it will. But why should there be a shock of disbelief? They were stupid idiots to hand out those credit cards and mortgages like they were candy. Only a fool didn't see it all coming to a head and boiling over, sooner or later. It was inevitable. Just too much abuse going on. Charge, charge, charge and purchasing homes they knew damn well they couldn't afford, but because they wanted to keep up with the Joneses. Well, this is what came of it.

This economy is going to go on like this for sometime. Recovery takes time and isn't going to bounce back tomorrow. The stock market is going to continue the bouncing ball activity for months to come.

[Moby]

Of course it will. But why should there be a shock of disbelief? They were stupid idiots to hand out those credit cards and mortgages like they were candy. Only a fool didn't see it all coming to a head and boiling over, sooner or later. It was inevitable. Just too much abuse going on. Charge, charge, charge and purchasing homes they knew damn well they couldn't afford, but because they wanted to keep up with the Joneses. Well, this is what came of it.

This economy is going to go on like this for sometime. Recovery takes time and isn't going to bounce back tomorrow. The stock market is going to continue the bouncing ball activity for months to come.
You might want to read a little more about the current crisis and even listen to Greenspan about it. Most people that aren't on media pay rolls seem to understand that it was the securities market, enabled by the changes in the OCC, that caused this crisis.

If it was just people not being able to pay their mortgage we could buy all those mortgages for less then $700 Billion. That $700 Billion could buy the failing mortgages of about 3.5 million homes but even the paid economists understand that is having little effect.

A decade ago giving out bad loans meant that you you'd go out of business. In 2004 you could suddenly make those bad loans, package them up in a mortgage backed security and sell it for a massive amount over it's actual value.

Consumers made mistakes but there was a much bigger scam going on.

[disrupter]

And it was a circular thing,

the more credit there was the more it drove up prices.
the more prices rose the more 'rationalization' there was that realestate was a 'certain' always upward investment.
Which sucked more global money/credit into these unbelievable profits.

I think we have become mindless mercenaries.
to a point of significant insanity.
We believed our own trumped up rhetoric, even when history would suggest questions.

The real loss of confidence is the way we govern ourselves & with what kind of people are wedging their way into power.

I gotta go with a randomized lottery.
you pick 8 people at random. and with popular voting sort out the best one. then you have an up or down vote on them.
if it is no you start the cycle again.

these corrupted, pompous, narcissistic egotists with hardly a brain or ounce of integrity are leading us from common sense & into zealot driven ruin.

Better to find the center of things in a muddled way than to constantly leap off cliffs to our doom.