Greenspan's Comments are laughable

The headlines blare out into the ether "Economy on brink of recession, Greenspan says".

http://www.reuters.com/article/businessNews/idUSJAT00371420080624?feedType=RSS&feedName=businessNews&rpc=23&sp=true

You might ask yourself why I say they are laughable. Well, well my friends of gloom and doom it was only a few short years ago that Alan Greenspan was the wizard of the goldilocks economy and he could do no wrong. I find it funny that the man at least on the surface of the situation most responsible for the structural problems he laments about says that he was responsible for nothing. (Please read excerpt from article in case you do not have time to read the link for the article above.)

Greenspan said he did not believe arguments that the housing problems in the U.S. were due to interest rates being too low during his tenure. "As far as I'm concerned, the data do not support it (that argument). The housing bubble is clearly an international phenomenon."

Hmmmm! Mr. Greenspan seems to forget that the USD had become the reserve currency of the world. It would allow lesser minds, such as mine, to assume that low interest rates on borrowing of the USD would help to fuel the speculation not only in housing in USA but in markets all over the world. Not to mention the practice of Wall Street buying up all sorts of paper and debt instruments. Then slicing, dicing, and repackaging them to sell in the open markets to friends and supposed foes alike. Ever ask yourself why there were buyers? Answer, because the good ol' USA was still seen as a Nation that looked like it knew what it was doing. The world had a begrudging respect for our business and financial institutions and people who ran them. To be simple about it. They trusted our leaders in business and finance knew what they were doing! Well Kiss that trust good bye, it went up in smoke with the housing and mortgage industries. We are now in uncharted territory. And unfortunately for Al he's the poster boy. He let the guests drink from the punch bowl long after the party should have ended.

I am not even going to try and delve into detail about the housing market in the United States and what caused this train wreck. Mr. Greenspan is just one culprit of many whom should have known better all the way down to the borrower who should have known they were living way beyond their means. We will save the vitriol for the remaining players in and around that industry for later posts. Suffice to say Greenspan only wants to be remembered for the good times. Unfortunately sometimes the good times are at the expense of others at a later date.

My only advice for Greenspan and his crowd of cheer leaders, albeit much smaller since he left office, are these words which at the moment I do not know who to give credit (possibly Mark Twain).

"When you take responsibility for the sunshine, you better be prepared to take the blame for the rain!"

Well Mr. Greenspan, it's raining.

Asland

Fire in the Economy

What is going on in today's economy. Is it the WAR or is it Inflation or is it just stupidity in Washington. You will see over the next coming weeks and months discussions about the weaknesses in our leaders. Markenomics is going to discuss these topics and more. Markenomics with authors Raider Mike (Mike Hurtado also Michael Hurtado) and Road Rage will contribute to making Markenomics a insightful blog to read and follow. Economic and political commentary will be the most discussed topics. Look for Mark Zinman of NMZ Financial, a home loan residential mortgage company and mortgage broker of Lafayette, California and the Walnut Creek area, and the broader Bay Area to contribute to discussions on home loans and mortgages. Discussions on mortgages, home loans, equity lines of credit, FNMA, Freddie Mac, the two GSEs, and other big mortgage related finance companies. Raider Mike will analyze the market place and the influence these companies will have on the financial system and the economy as a whole. See Through the Forest is the name of the url and it's name is exactly what it sounds like: to see through the forest and glean what we can from what is happening in the U.S. economy and it's impact on you and your mortgage and home finance needs. This is also a mortgage and real estate blog for the Bay Area of California, Contra Costa County real estate and mortage and home loan information and beyond. Lafayette, California real estate and mortgage home loans will be discussed as well as mortgage rate quotes, not just in Lafayette, but Dublin, Pleasanton, Pleasant Hill and Orinda. Orinda real estate and home loans will be discussed. All of the communities that make up Contra Costa County real estate and mortgage home loans. Lamorinda home loans and real estate. Lamorinda is a combination of communities of Lafayette, Moraga, and Orinda.