12 December 2007

Alan "Bubbles" Greenspan, the "I Didn't Do It" Kid

Yep, he has an article in the Wall Street Journal claiming that it's not his fault.

Felix Salmon of Portfolio.com pretty much eviscerates him on his lies.
That said, however, the main reason why the housing bust seems to be much worse in the US than elsewhere is surely those ARMs – which, as Greenspan concedes, were a function of low short-term interest rates. They allowed many people to buy houses they couldn't afford, which in turn created a massive solvency crisis.
Greenspan's reputation is trashed, as well it should be.


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