Was Allan Greenspan part of a Sub prime Mortgage collaspe conspiracy?

[52ndStreet]

I submit to you all , that former Federal Reserve Chairman Allan Greenspan
may have been part of a larger conspiracy to defraud the American public.

Why else would this man advise Americans to "Utilize the equity in your homes" "Access the leverage in multiple mortgages", "And use the income to purchase Stocks, and other financial intrument's".

This $700 Billion or $500 billion has got to be in some ones off shore bank account. The FBI, must initiate investigations on Mr. Greenspan.

We must get to the bottom of this entire sub-prime mortgage nightmare!?
Some one has got to be held accountable.!!?

 

[Toro]

I can't tell if you are serious or not.

 

[BaronVonBigmeat]

He isn't getting money directly funneled into his own personal bank account, I don't think anyone is alleging that. But he did recommend ARM mortgages and push interest rates so low that it fueled the bubble, yes.

 

[xsited1]

He is indirectly to blame.

I have a great idea! Why don't we get Congress to pass some unconstitutional bail-out package and then allow one of the supporters to become President of the United States? Yeah!!!

 

[editec]

He isn't getting money directly funneled into his own personal bank account, I don't think anyone is alleging that. But he did recommend ARM mortgages and push interest rates so low that it fueled the bubble, yes.

He "recommended ARMS including NINA's?, Baron?

You sure about that?

Can you fill in the details of that story for me, please?

 

[indago]

"The problem here is that something that looked to be a very solid edifice and indeed a critical pillar to market competition and free markets did break down. And that, as I said, shocked me and I don't fully understand why it happened". — Alan Greenspan 23 October 2008

LIARS ALL! They all knew what would happen and they did it anyway.

 

[editec]

The chairman of the FED didn't know that banks were gambling with the other people's money?

That I rather doubt.

 

[Paulie]

He "recommended ARMS including NINA's?, Baron?

You sure about that?

Can you fill in the details of that story for me, please?

Here's Greenspan recommending ARM's:

http://www.usatoday.com/money/economy/fed/2004-02-23-greenspan-debt_x.htm

WASHINGTON — Federal Reserve Chairman Alan Greenspan said Monday that Americans' preference for long-term, fixed-rate mortgages means many are paying more than necessary for their homes and suggested consumers would benefit if lenders offered more alternatives.

In a standing-room-only speech to the Credit Union National Association meeting here, Greenspan also said U.S. household finances appeared generally sound, despite rising debt levels and bankruptcy filings. Low interest rates and surging home prices have given consumers flexibility to manage debt", he said.

"Overall, the household sector seems to be in good shape," Greenspan said.

...

He said a Fed study suggested many homeowners could have saved tens of thousands of dollars in the last decade if they had ARMs. Those savings would not have been realized, however, had interest rates shot up.

Yes, and with rates at 1% in '02, the only obvious thing than can happen is for rates to go UP.


And here's Greenspan talking about how the equity borrowing is working out so well:

http://www.federalreserve.gov/boarddocs/speeches/2004/20040223/

Refinancing has allowed homeowners both to take advantage of lower rates to reduce their monthly payments and, in many cases, to extract some of the built-up equity in their homes. These two effects seem to have roughly offset each other, suggesting that homeowners might set a target for their mortgage payments as a proportion of income and adjust their borrowing accordingly.

Indeed, the surge in mortgage refinancings likely improved rather than worsened the financial condition of the average homeowner. Some of the equity extracted through mortgage refinancing was used to pay down more expensive, non-tax-deductible consumer debt or used to make purchases that would otherwise have been financed by more expensive and less tax-favored credit. Indeed, the refinancing phenomenon has very likely been a supportive factor for the general economy. The precise effect is difficult to identify because it is hard to know how much of the spending financed by home equity extraction might have taken place anyway. Nonetheless, we know that increases in home values and the borrowing against home equity likely helped cushion the effects of a declining stock market during 2001 and 2002.

Helped cushion the effects, and also helped lead to a new bubble. Greenspan ADVOCATED this, and was only able to do so successfully by enticing borrowers with artificially low interest rates.

If anyone thinks this man, and the other brilliant minds he surrounds himself with, didn't know what would happen as a result of all this credit, they are fools. The writing was on the wall, and standard Austrian economics proves even BEFOREHAND that it wouldn't, and never will, work. The Austrians were warning about it for YEARS, but Greenspan is somehow CLUELESS?

Give me a fucking break. This man is a criminal, and he just came out and flat out fucking LIED TO THE WORLD. I might even have had a milliliter of respect for him, had he came out and apologized for being wrong and held himself at least partially accountable. But he didn't. He lied his ass off, and people are buying it. Mostly the liberals, because he gave them a talking point to run with: "dereg was the problem, blah blah blah".

Editec, you can't possibly be stupid enough to fall for it, can you?

 

[editec]

I was not aware of this speech, Paul.

Now just for a moment let's and ask ourselves if every ARM is a NINA. (no income verification; no asset verification)

Are they?

Well I can tell you, because I used be a mortgage broker that they are not.

Plenty of ARMS were forged that demanded that the borrower could not only pay for the teaser years, but also had the income to pay for the adjusted rates, too. I know because it was a pain in my ass to have to check their ability to pay under BOTH rates.

To the extent that you are angry that about the FEDS responsibility for this mess (and I quite agree that the FED is responsible in part) I'm right there with you.

But you have to understand that GREENSPAN was once considered the darling of the Austrian school, too. You are aware of that, right?

I am convinced that the only solution to the problem of the FED and the cozy relationship it has with the private banks which demanded and got that deregulation which allowed this disaster to happen, (funded by the Fed, I note) is the following:

1. The FEDERAL GOVERNMENT becomes the issuer of all credit..INCLUDING TO ITSELF!

2. Every citizen borrows DIRECTLY from that souce based on THEIR credit rating.

3. Citizens pay their loans BACK to the government.

All the FED does is give the right to create money to private banks, which not only get to borrow that new money from the FED at enormous discounts, but get to charge much much higher interest on it than is really necessary to the borrower.

These banks has enjoyed (for credit cards) a 15 or 16% spread in many cases. And in cases of mortgages they enjoyed spreads of 4 or 5 points, too.

That's predatory usary, AFAIC.

Now to be SURE, the government can screw that system up by loaning more money that the economy warrants.

I'll readily admit that there is no bulletproof way of doing this that people cannot screw up.

But to the extent that by initiating this system we eliminate that class of banks which essantially do nothing for us, but increase the debt load to all borrowers?

The fractional banking system that the right wingers and others have been complaining about is the FOUNDATION upon which our national and personal enslavement by fiscal means was initiated.

It's long past the time for us to change that system.


Until this DEMOCRATIC Republic controls its currency, we're slaves to bankers, Paul.

I suspect you understand that already.

 

[Paulie]

But you have to understand that GREENSPAN was once considered the darling of the Austrian school, too. You are aware of that, right?

No I certainly was not aware of that, because it's simply not true. If you have a source for that I'd love to see it. He's commented on the Austrian school before, and has attended a seminar by Von Mises, but to claim he was the "darling"?

Greenspan doesn't even lend credence to the idea of the artificially created business cycle, how could he possibly be the darling of the Austrian School?

I'll readily admit that there is no bulletproof way of doing this that people cannot screw up.

The only bulletproof way of issuing currency and credit is for the currency to be backed by something of perpetual value.

And you really need to understand that you don't need to preach to me about the stranglehold bankers, or as I call them "banksters", have on our society.

 

[52ndStreet]

It appears that Allan Greenspan may in fact be a part of a Sub -prime Mortgage refinance
conspiracy, aimed at defrauding hundreds of millions of Americans.The evidence is right here is some of the previous posts.

 

[indago]

CULPABLE

 

[editec]

No I certainly was not aware of that, because it's simply not true. If you have a source for that I'd love to see it. He's commented on the Austrian school before, and has attended a seminar by Von Mises, but to claim he was the "darling"?

I'll have to see if I can find that source. It may be his own book.

Greenspan doesn't even lend credence to the idea of the artificially created business cycle, how could he possibly be the darling of the Austrian School?

Good question. Let me see if I can find my source for thinking that, and we can both ponder its significance.

The only bulletproof way of issuing currency and credit is for the currency to be backed by something of perpetual value.

The only thing of perpetual value is the labor of men. Not gold, not silver, but the labor of people which creates value.

And you really need to understand that you don't need to preach to me about the stranglehold bankers, or as I call them "banksters", have on our society.

Understood. I was simply telling you my position on this issue, not lecturing you.

I see that you are a gold bug though and would be more than happy to tell you in great tedious detail exactly why you are dead wrong about the gold standard.