Alan Greenspan
TwoAllBeefPatties
If you are willing to entertain a bit of conspiracy theory for a
minute, I am not willing to buy for 1 second Greenspan and his group
at the Fed were unaware of the problems developing in the housing and
lending markets, but that they were in-fact engineered into the
system. For what purpose?
In effect, it appears we have ripped off the rest of the world for
somewhere between $150 billion and $1T. How did the scam work? Simple.
Create Freddy Mac and Fannie Mae who between them were able to create
somewhere in the neighborhood of a trillion dollars, buy out loans it
had to know were phony, clean them up and sell them to unwitting
investors all over the world, packaged up as grade A paper. All this
money was dumped into the economy and has been it's driving force for
more than half a decade. The FB's everyone laments about should be
thought of more like patsies than anything else, who were used as
conduits to pump this money into the economy in the form of bogus
loans, since our government has deniability, and can turn to these
patsies and say "they did not repay their debts, you the investor
lost", "not us". The Europeans, Japanese and Chinese are starting to
wake up to the reality, and are all scrambling to provide liquidity in
the wake of the losses, but all the money is here (or was here) and
has in large part funded the Iraq war for the last few years.
To be sure, we will have a huge problem with credibility in the future
and this will hurt our economy for decades, but I believe the US is
currently in the early stages of a Soviet like economic collapse, and
that Greenspans move bought us a few extra years, while Bush was
supposed to have secured our oil supply for the next twenty years in
the Middle East.
Rod Speed
> If you are willing to entertain a bit of conspiracy theory for a minute, I am
> not willing to buy for 1 second Greenspan and his group at the Fed were
> unaware of the problems developing in the housing and lending markets,
They must have been asleep at the wheel to have been unaware.
Its much more likely that they couldnt think of any effective way to do anything about it.
> but that they were in-fact engineered into the system.
By who ? No point in the Fed doing that deliberately.
> For what purpose?
> In effect, it appears we have ripped off the rest of the
> world for somewhere between $150 billion and $1T.
Thats pure pig ignorant fantasy.
> How did the scam work? Simple. Create Freddy Mac and Fannie Mae who between
> them were able to create somewhere in the neighborhood of a trillion dollars,
Thats pure pig ignorant fantasy.
> buy out loans it had to know were phony,
Its not about phony, its about high risk.
> clean them up and sell them to unwitting investors
> all over the world, packaged up as grade A paper.
They aint the only ones to do that, and the other fundamental problem
is how they got an A grade rating from the ratings agencys in the first
place when they were nothing like that in practice. THATS the real
problem which hasnt had much coverage in the media at all yet.
> All this money was dumped into the economy and
> has been it's driving force for more than half a decade.
Its more complicated than that on the defaults. Doesnt explain why we
have only recently seen funds wiped out by those securitised loans.
> The FB's everyone laments about should be thought of more like
> patsies than anything else, who were used as conduits to pump this
> money into the economy in the form of bogus loans, since our
> government has deniability, and can turn to these patsies and say
> "they did not repay their debts, you the investor lost", "not us".
Mindlessly silly conspiracy theory.
> The Europeans, Japanese and Chinese are starting to wake up to the
> reality, and are all scrambling to provide liquidity in the wake of the losses,
The fed has had to do that too.
> but all the money is here (or was here) and has in
> large part funded the Iraq war for the last few years.
You're completely off with the fairys now.
> To be sure, we will have a huge problem with credibility
> in the future and this will hurt our economy for decades,
The same mindless hyperventilation was seen with
the S&L fiasco too. Didnt actually happen like that.
> but I believe the US is currently in the early stages of a Soviet like economic collapse,
More fool you, it isnt.
> and that Greenspans move bought us a few extra years,
Greenspan aint what produced the sub prime fiasco.
> while Bush was supposed to have secured our oil
> supply for the next twenty years in the Middle East.
More mindless silly stuff. There aint no oil in Afghanistan or Somalia.
rick++
to discover all the loopholes (some more legal than others)
to make as large of a profit as it can. Then the schemes
eventually dry up hurting the latecomers and the ignorant.
Its always tempting to jump on the latest bandwagon.
But if its "to good to be true" then it eventually is.
These booms and "corrections" seem to repeat regularly.
Many of the so-called "improvements" in the real estate
process like CDOs were in response to the last US crisis
20 years ago. Theoretically governement regulaters are
supposed to discover and halt them. But most of these
groups in the USA are woefully underfunded by lobbyists
and barely scratch the surface.
Rod Speed
> Never understimate the creativity of the financial industry
> to discover all the loopholes (some more legal than others)
> to make as large of a profit as it can. Then the schemes
> eventually dry up hurting the latecomers and the ignorant.
> Its always tempting to jump on the latest bandwagon.
> But if its "to good to be true" then it eventually is.
> These booms and "corrections" seem to repeat regularly.
> Many of the so-called "improvements" in the real estate
> process like CDOs were in response to the last US crisis
> 20 years ago. Theoretically governement regulaters are
> supposed to discover and halt them.
The problem in this case is more that the rating agencys which
gave completely silly ratings to securitised sub prime mortgages
and the fools who basically believed those silly ratings, particularly
when that involved city councils using those for their investments etc.
> But most of these groups in the USA are woefully
> underfunded by lobbyists and barely scratch the surface.
Not really feasible for the govt regulators to halt that one.