Tuesday, 18 September 2007

Greedscam passes the buck

From marketwatch.com:

Greenspan: Efforts to get mortgage rates up failed Ex-Fed chief says he's not to blame for subprime mess

WASHINGTON (MarketWatch) -- Former Federal Reserve Board chairman Alan Greenspan says he tried to raise mortgage rates to head off a housing bubble, but the effort came to naught because of "global forces" that had the effect of keeping long-term interest rates low.

In an interview early Monday with NBC News's "Today Show," Greenspan said he does not accept blame for the nation's housing bubble.

He noted that 20 to 30 other countries have experienced housing bubbles, adding that these were "all caused by the same thing, this global sharp decline in long-term interest rates, specifically mortgage rates.

"We tried to get mortgage rates up. We failed. The reason we failed is global forces are overwhelming," he said.
Less than 2 years out of office and already Greedscam has turned into a revisionist. I doubt reasonable people would lay the blame for the housing bubble squarely at Greenspan's feet but you would expect him to at least acknowledge his role in the process.

Mysterious global forces were to blame, not central banks facilitating massive doses of cheap credit via a prolonged period of artificially low interest rates. Well I'm glad that's been solved, now we can all sleep better knowing the truth.