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To: Tommaso who wrote (4001)4/8/2004 10:00:40 PM
From: CalculatedRisk  Read Replies (2) | Respond to of 116555
 
You wrote (and I agree completely): "I do think Greenspan missed a major opportunity by refusing to raise margin interest rates in 1999. He had the power and the tools and he did not use them."

Your argument is analogous to the current situation in consumer lending and especially housing. I believe we should see higher credit worthiness standards and larger down payments for housing, and yet, we are seeing looser lending requirements ... similar to Greenspan not raising margin requirements in the late 90s stock bubble (that some of us on SI were calling for!)