Nice to see the MSM doing their job, evidenced by this amazing expose in the New York Times. Now I wonder if Congress will start doing theirs.
This is serious stuff HP'ers. Banks and lenders will fail, the US economy will be decimated, millions will lose their homes and our entire financial system will fall into disrepute. All because Alan Greenspan was either too incompetent or too corrupt to do anything about the out-of-control REIC that he was supposed to be regulating, while at the same time keeping interest rates too low for too long.
HousingPANIC again calls on our corrupt Congress to open an investigation into the housing bubble and crash, with a particular focus on Alan Greenspan and the US Federal Reserve Bank. I don't know what the f*ck Schumer, Frank and Dodd are waiting for - more money or direction from Goldman Sachs perhaps? Let's get it on boys - I want subpoenas flying NOW! And the first one should be to Greenspan - the #1 cause of the Great Housing Bubble & Crash.
Fed Shrugged as Subprime Crisis Spread
WASHINGTON — Until the boom in subprime mortgages turned into a national nightmare this summer, the few people who tried to warn federal banking officials might as well have been talking to themselves.
Edward M. Gramlich, a Federal Reserve governor who died in September, warned nearly seven years ago that a fast-growing new breed of lenders was luring many people into risky mortgages they could not afford.
But when Mr. Gramlich privately urged Fed examiners to investigate mortgage lenders affiliated with national banks, he was rebuffed by Alan Greenspan, the Fed chairman.
Today, as the mortgage crisis of 2007 worsens and threatens to tip the economy into a recession, many are asking: where was Washington?
An examination of regulatory decisions shows that the Federal Reserve and other agencies waited until it was too late before trying to tame the industry’s excesses. Both the Fed and the Bush administration placed a higher priority on promoting “financial innovation” and what President Bush has called the “ownership society.”