This whole housing bubble was arguably caused almost single-handedly by Alan Greenspan, so I find it ironic he is now "warning" about the fallout of his own policies. Question is: will the Fed once again try to inflate their way out of this crash, like they did in 2000-2003, thus causing yet another bubble in another asset market? He did it in 1998 and 2001, but will Bernanke do it in 2007-08?
Please explain how in the world this is possible when the FOMC is comprised of 12 voting members. Seriously, all you guys pointing fingers at Al G., have you ever heard the term "figurehead"?
http://www.marketwatch.com/News/Sto...x?guid={4A7839E2-AC2D-4BD0-B069-1513F703B9EB} Can anyone explain the above to me? What is MBS? And is Countrywide safe? If they sold 92% of these loans to the market, then why would their stock keep falling? The other question is, if they only keep 8% on their books, how do they make profit? Simply by re-selling those mortgages?
didnt you know. this is the era of all hedge funds are hedged and make billions and all banks and institutions are hedged and make billions. everybody is hedged and there is no risk whatsoever in the system. its a no brainer. risk free,full hedged profitable markets.
Has Greenspan ever used the word "insanity" before? "I was shocked to find the credit derivatives market, which was working superbly, ends up with the settlement and clearing done with 19th century technology," Greenspan told the futures conference "There's an insanity out there that I don't understand," he added. He called on the New York Federal Reserve Bank, which plays a crucial role in the U.S. central bank's financial settlements procedure, to stay involved or "we would face a really dangerous problem."