I still can't believe this testimony from 2005, when then-candidate Bernanke had these words of wisdom for the monkeys in Congress who voted for him:
"House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals, including robust growth in jobs and incomes, low mortgage rates, steady rates of household formation, and factors that limit the expansion of housing supply in some areas."
Man, you'd have thunk a trained economist would have seen this one a mile away. The fraud, the CDO's, the SIV's, the corruption, the rampant speculation, the inventory, the corrupted commission-fueled REIC, the bought-and-paid-for Congress, and most importantly, the absolute lack of oversight or regulation by the Fed itself.
Maybe he didn't want to rain on Greenspan's Medal of Freedom parade. Maybe he was telling the monkeys in Congress what they wanted to hear, versus the truth. And maybe we should send him a copy of "Manias, Panics and Crashes".
I bet he sees the housing bubble now, and what really caused it (hint - it wasn't strong economic fundamentals). And I bet he wishes he never took the job.