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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (68482)	11/21/2010 8:32:45 PM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 218000

Our great, venerable and estimable idol Alan Greenspan KBE didn't start the housing boom. He was just a money lender. He didn't set housing prices. Those were agreed between buyers and sellers and none of them consulted him on what they should pay or sell for. The Federal Reserve loaned money. Banks wanted to borrow it. Mortgagors wanted to borrow it from them to pay stupidly high prices for houses without means of repaying the loans, especially if interest rates went up again. Heck, even though interest rates went down a huge amount, they still couldn't repay their loans. Blaming Alan Greenspan for the problem is like blaming BP because somebody bought high octane petrol then drove their dirty great SUV at 100 miles an hour into a bridge abutment. While it's true that if BP hadn't supplied the fuel, the vehicle wouldn't have moved [unless they got it from somebody else], the person in charge pushing the accelerator was the one causing the crash of the SUV, and the buyer set the speed of the house ready for the crash. If the driver drove [as I did when looking at houses in Southern California in 2005 and 2006] and bought a house at the same price I didn't, then their SUV would be unmarked and they would now be renting a nice house at a low price with their equity intact. They could buy two houses for the same price they didn't pay 5 years ago. It was not Alan Greenspan's fault. It's pathetic to blame other people for one's own silly decisions. It means they won't learn from their mistakes and will blame other people for their next mistakes. Mqurice