Greenspan's legacy may be
Choose One: (a) The Greatest Fed "Maestro" of All times, or (b) Just Plain old "Mr. Bubbles." We will just have to wait and see how this all shakes out during 2006. In the meantime, only about 14% of Californians can afford a
median priced house today. In some cities, that figure is as low as 9%. Which goes a long way to explain why almost 60% of recent home buyers elected exotic mortgages. Today, a member of the Fed's Board of Directors issued a pointed warning on
Exotic Mortgages. "Too little, too late" is my personal opinion on the comments by Ms. Susan Bies. What does Mr. Greenspan and/or Mr. Bernanke think about all these interest only loans, or ARM loan or Option-Arm loans? Your guess is as good as mine.
What do I know, anyway? After all, I'm just a geezer.
Yes, Greenspan was a bozo.
From the day in August of 1987 when he got the job he's been a disaster.
Within months of replacing Volcker Greenspan caused the largest drop in the stock market since the Great Depression.
He is Mr Bubbles. He's give us the collapse of the real estate market in the early 90s, Jerkoff I in the White House, and the Internet Bubble, caused by his "Irrationally Exhuberent" monetary policy.
Finally, he's left us with a massive overhead of money creation, one that's pushed gold over $550 and will soon cause long-term interest rates to head back up.
Bernanke will be dealing with Greenspan's blunders for years to come.
Wait till they write the book on this loser.