Is it Greenspan's fault?

Is it Greenspan's fault?
Oct 29, 2008 02:53
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	Who should be responsible for the current financial crisis in US? The former US Fed chairman. Many blame Greenspan and the Fed led by him for this mess. It is he who allowed the era of cheap interest rates to create a speculative bubble. He admitted there was an equity bubble but declined to do anything about it. After suffering losses in the stock market, the Americans chose to buy houses. Greenspan said repeatedly that it was safe to do investments in housing since the prices didn't fall. People could wait out any downturn. Many guys thought that Greenspan, the world's financial genius' view, must be right. Was he right? The financial crisis in US just roots in the credit crisis (sub-prime mortgage crisis). On Oct. 23th, Greenspan said the credit crisis had been “much broader than anything I could have imagined” and admitted thatthere had been a “flaw” in his governing ideology. Is his apology? What do you think of him? Is it his fault and responsibility for the financial crisis?

Oct 29, 2008 02:53

ZOEY
Points:
Join Date: Nov 29, 2004
Status: offline

Who should be responsible for the current financial crisis in US? The former US Fed chairman. Many blame Greenspan and the Fed led by him for this mess. It is he who allowed the era of cheap interest rates to create a speculative bubble. He admitted there was an equity bubble but declined to do anything about it.

After suffering losses in the stock market, the Americans chose to buy houses. Greenspan said repeatedly that it was safe to do investments in housing since the prices didn't fall. People could wait out any downturn. Many guys thought that Greenspan, the world's financial genius' view, must be right. Was he right? The financial crisis in US just roots in the credit crisis (sub-prime mortgage crisis).

On Oct. 23th, Greenspan said the credit crisis had been “much broader than anything I could have imagined” and admitted thatthere had been a “flaw” in his governing ideology. Is his apology?

What do you think of him? Is it his fault and responsibility for the financial crisis?

Oct 29, 2008 15:15	#1
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	Mr. Alan Greenspan has a tendency to "talk in circles" or "kicking up the dust" to obscure the horizon.

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