Alan "Bubbles" Greenspan, the "I Didn't Do It Kid", Says that Housing is not His Fault

Yep, he's claiming that the housing bubble, and subsequent bust are not his fault.

• He claims that evidence of any link between monetary policy and the bubble was “statistically very fragile”.

Let's see, you nearly tripled the money supply before you stopped publishing M3 data in 2006, and that is "fragile".

• He Claims that he is, "puzzled why so many commentators seek to explain the US housing bubble in terms of Fed actions when many other economies with different central banks and different monetary policies also saw rapid house price gains."

M3 again baby, with all that money that you created, it all had to go somewhere.

• Mr Greenspan says, it is only with hindsight that it looks like the US economic recovery was well enough entrenched before 2004

Dude, that was you PIMPING yourself to George Walker Bush for the election, so you would get reappointed.

• Mr Greenspan reaffirms his long-held belief that central banks cannot effectively “lean against the wind” by setting monetary policy a little tighter than it would otherwise have been during asset price booms.

Dude, you have actively pumped up and bailed out every asset boom under your watch. You engineered bailouts, either through monetary policy such as low interest rates, or directly, as you did with the LTCM hedge fund.

• Mr Greenspan also takes issue with those who blame lax regulation by the Fed for allowing a serious deterioration in underwriting standards in the mortgage industry. The problem, Mr Greenspan argues, “is not the lack of regulation, but unrealistic expectations about what regulators are able to prevent”.

Which is why you did your best to effectively dismantle Glass-Steagall back when Paul Volker was Fed Chair.

• The former Fed chief says the core of the subprime problem “lies with the misjudgments of the investment community”. The scramble to invest in what were initially highly profitable subprime loans would have overwhelmed any regulatory effort to slow the growth of this sector, he claims.

You allowed, scratch that, you encouraged the repackaging of garbage into Byzantinely complex instruments, and you called them good.

Regulators are more than able to prevent this, you were simply completely unwilling to take even the most basic advisory steps to do so. Your whole hearted of so called financial innovations like "credit default swaps" which are too complex for the people who trade them to understand is clear.

The legacy of Ayn Rand, your mentor, is bad writing, ugly prose, and the impoverishment of all but the most dishonest.

Thanks asshole.