Greenspan admitting he did it

Discussion in 'Economics' started by james_bond_3rd, Aug 19, 2007.

  1. “History tells us it’s far better to have people periodically going to excess with its adverse consequences than to try to block it off in the beginning. These adverse periods are very painful but they’re inevitable if we choose to maintain a system in which people are free to take risks, a necessary condition for maximum sustainable economic growth. We have learned to move risk from the leveraged institutions which are the major lenders in this country to those far more capable of absorbing loss. It’s why our economy in recent years has developed the flexibility to absorb severe adjustments.”
    So was this (creating the housing bubble) deliberate on Greenspan's part to try to teach "people" a lesson?
  2. Good to see you're as clueless about markets as you are about politics......
  3. i think what he is trying to say is that capitalism is a double edged sword.

  4. Sad to see that you're as incompetent in reading as in trading...
  5. Well let's see. My lifetime trading profits are around 2.2 mil. and yours?
  6. And you parade that around here like a trophy? Lol
  7. jon2288


    What followed his "irrational exuberrance" were 12 rate hikes in rapid sequence. After the stock markets collapse, he adopted an easy monetary policy which was the root cause of housing boom. Another example was that months after his appointment as fed chairman in 1987, he talked about raising interest rates. Dow fell 500 points the next day, then he retracted his comment.

    Greenspan is either incompetent or he loves to see maximum pain.