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I know it's been said before, but Greenspan admits some fault in this crisis.

StageLeft

No Lifer
Sep 29, 2000
70,150
2
0
From the same link
Alan Greenspan, who ran the Fed for 18 1/2 years, called it a "once-in-a century credit tsunami," and conceded that he made mistakes that may have aggravated the economy's slump.
We know that the main thing Greenspan did was cut the hell out of the interest rate and so then
Bernanke says he'll use all tools to battle the crisis.

To that end, Fed policymakers are widely expected to lower the central bank's key interest rate
.

I realize that when you have a busted oil well on fire you can actually throw more fire at it to get it out, but analogies like that aside, this is starting to look like if you bash your head against a wall and it hurts you bash it harder so that you'll pass out and not feel the pain anymore.
 

Genx87

Lifer
Apr 8, 2002
41,063
495
126
I believe this is kind of a repost from last week. I will say again at least he has the balls to admit to his role and faults in this scenario. Congress lacks that big time and should be ashamed of themselves.
 

jman19

Lifer
Nov 3, 2000
11,183
610
126
Originally posted by: Genx87
I believe this is kind of a repost from last week. I will say again at least he has the balls to admit to his role and faults in this scenario. Congress lacks that big time and should be ashamed of themselves.
One thing Republicans and Democrats can agree on is that any crisis isn't their fault.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
The tools aren't to blame for the usage of them. They are just merely tools. How they are wielded are the fault of the wielder.
 

rchiu

Diamond Member
Jun 8, 2002
3,846
0
0
Originally posted by: Skoorb
From the same link
Alan Greenspan, who ran the Fed for 18 1/2 years, called it a "once-in-a century credit tsunami," and conceded that he made mistakes that may have aggravated the economy's slump.
We know that the main thing Greenspan did was cut the hell out of the interest rate and so then
Bernanke says he'll use all tools to battle the crisis.

To that end, Fed policymakers are widely expected to lower the central bank's key interest rate
.

I realize that when you have a busted oil well on fire you can actually throw more fire at it to get it out, but analogies like that aside, this is starting to look like if you bash your head against a wall and it hurts you bash it harder so that you'll pass out and not feel the pain anymore.
Why do people think one set of rule apply to all situation? Just because it was bad in the past to have low interest rate when the market was flood with money, it doesn't mean it is bad now to have low interest rate with the liquidity dried up.
 

gevorg

Diamond Member
Nov 3, 2004
5,075
1
0
Greenspan was just a puppet for bankers, just like Bernanke. Low interest rates primary benefit the banks and then possibly everyone else if done right. Greenspan's use of low interest rates has failed. Bernanke made it even worse.
 

miketheidiot

Lifer
Sep 3, 2004
11,062
1
0
Originally posted by: Skoorb
From the same link
Alan Greenspan, who ran the Fed for 18 1/2 years, called it a "once-in-a century credit tsunami," and conceded that he made mistakes that may have aggravated the economy's slump.
We know that the main thing Greenspan did was cut the hell out of the interest rate and so then
Bernanke says he'll use all tools to battle the crisis.

To that end, Fed policymakers are widely expected to lower the central bank's key interest rate
.

I realize that when you have a busted oil well on fire you can actually throw more fire at it to get it out, but analogies like that aside, this is starting to look like if you bash your head against a wall and it hurts you bash it harder so that you'll pass out and not feel the pain anymore.
his problem wasn't cutting them, it was leaving them low so long. Low interest rates + perpetually increasing housing prices + 'riskless' securitization through credit default swaps caused a disaster.
 

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