Greenspan should have let it fail and perhaps none of this subprime shit or credit crisis would have ever happened.
Here's my theory - A large majority of Americans felt entitled to a new SUV every two years, along with granite countertops in their brand new 4000 sqft suburban home, with furnishings by PotteryBarn. All while "gettin' rich" off the real estate market, and NEVER saving a penny for a rainy day or retirement. Just year after year of wasteful, stupid decisions on the part of American consumers. Egregiously poor balance sheet management - That's my theory and I'm sticking to it.
Good post. May I add the in ground swimming pool, hot tub, country club membership, and expensive vacations to your list of "entitelments" for the average American? Thank you.
When all is said and done, even people who live below their means will be severely effected by this. If you don't work for the government or in the healthcare profession, you're job isn't secure. This could snowball very quickly.
I agree. Greenspan was congratulated for avoiding recession for 15 consecutive years by printing money and lowering interest rates at the first sign of trouble. Had he let recessions (a normal part of the business cycle) happen then we wouldn't be where we are now. He has created a generation that does not expect recessions or tough times and therefore has never learned to save.