>>Greenspan had little to do with it<<
greenspan had EVERYTHING to do with it...
>>Greed is a factor.<<
people are ALWAYS greedy. something was different this time. what was it? i will tell you in a minute...
>>The loose banking system was a factor<<
yes, and guess who has an impact on banking behavior?
>>The screwed up accounting system of companies and their lies was a factor. <<
this is true and isn't directly greenspan's fault, although he could have challenged it...
>>The lies of Wall Street were a factor<<
wall street hasn't changed. they ALWAYS mislead.
anatomy of a bubble...
1. create the mirage that we are in a new economy. what will the cause be? computers. however, productivity isn't going up as one would expect. alan greenspan - "don't worry guys, we'll change the way we measure productivity and then, all of a sudden, we'll have the foundation for the new economy!" yes, alan.com rigged gdp and productivity. in fact, it was double what it would have been in 1999 had he not rigged the numbers. the new economy paradigm was the foundation of the bubble and alan greenspan created the illusion by rigging the numbers and whipped people into a frenzy by talking about the "new economy."
2. mislead people about true inflation and exclude MASSIVE asset inflation from discussion.
3. make credit easily accessible to banks and allow them to rollover debt to get around the asset to loan ratio. banks, in turn, would make stupid loans b/c they were flush with cash.
4. talk nonsense about a "new economy" that never existed and saying repeatedly that "one can't know a bubble until after it is over." pure pig sh*t.
alan greenspan is knee deep.
notice this distinction. alan.com created and fed the bubble. he didn't cause it to crash, imho. the mere fact it was a bubble guaranteed it was going to crash - no matter what happened. that is why financial disconnects are bad - even when they *feel* good. |
