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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (31543)	5/19/2005 11:30:29 AM
From: Valuepro	Read Replies (1) \| Respond to of 306849

John, "Greenspan sure did a nice job controlling the S&L's when he gained control <g>. Perhaps this is the reason why he has had a hands off approach to the credit and regional housing bubble for way too long?" John, not sure I understand. He let things get to the levels of crisis in some few institutions (and maybe it was all planned anyway), and then assisted in changing accounting rules for S&L's (not banks). By the new rules, many more institutions were suddenly in trouble. Of those that survived, most all did so by becoming banks.

To: John Vosilla who wrote (31543)	5/19/2005 11:59:45 AM
From: CalculatedRisk	Read Replies (3) \| Respond to of 306849

Don't forget Greenspan worked as a consultant for Lincoln S&L before going to the FED. From Fleck: The last thing that Alan Greenspan did before he left Townsend Greenspan to become Fed Chairman, was to opine on the S&L industry, and more precisely Charlie Keating's S&L. What follows is a vignette from the book "Inside Job," written by Steven Pizzo, about an encounter in 1984 between Greenspan and Ed Gray, who was the Federal Home Loan Bank board chairman. "Gray received a letter from respected economist Alan Greenspan telling him he should stop worrying so much. Greenspan wrote that deregulation was working just as planned, and he named 17 thrifts that had reported record profits and were prospering under the new rules. Greenspan wrote the letter while he was a paid consultant for Lincoln Savings & Loan of Irvine, CA, owned by a Charles Keating, Jr., company. Four years after Greenspan wrote the letter to Gray, 15 of the 17 thrifts he'd cited would be out of business and would cost the FSLIC $3 billion in losses." In addition, in 1985, Greenspan pronounced specifically that the management of the Keating thrift enterprise was "seasoned and expert" with a "record of outstanding success in making sound and profitable direct investments." fleckensteincapital.com