Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Bonefish who wrote (46669)	12/5/2005 1:02:33 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

No, I don't blame it all on Greenspan but he is largely responsible. As I have previous stated, I believe there are 3 phases to the credit bubble that created the real estate bubble. 1. The feds lowering rate to accommodate who knows what while real estate was already appreciating at a very healthy pace. 2. The expansion of ABS and derivatives markets provided limitless funds for the bubble. 3. When natural demand started to fade, lenders supported by 1 and 2 above started to relax underwriting guidelines to totally unsound levels. As you can see, the Feds started it AND the Feds could have done something to stop, or at least slow down the inflation of the bubble. For all practical purposes, the Fed has been Greenspan for quite a while now. Instead of doing the right thing, he was out promoting ARMs to the masses who would be paying the price of Greenspan's blunder for decades to come. I started following Greenspan by his actions since the LTCM days. He is in my mind one of the most destructive forces of our country, not just the cause of G.R.E.B.