July 31, 2008

Having caused the greatest financial mania in human history, Alan Greenspan now has these simple words of wisdom today for prospective homebuyers...

"This is a once-in-a-century type of phenomena... We're still nowhere near the bottom of home pricing"

-Alan Greenspan, Great Housing Ponzi Scheme Creator, July 31, 2008

33 comments:

Anonymous said...

How about Bill Clinton repealing the 1933 Glass-Steagall Act? He did this in 1999.

On November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal was to allow commercial and investment banks to consolidate. Some economists have criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.[6][7]

…One reason banks are losing money is the repeal nine years ago of the 1933 Glass-Steagall Act, which separated commercial and investment banking after excessive risk- taking contributed to the Great Depression


____

Greenie had a part, to be sure, but this is far from all his doing.

Keith, you need to graduate to the 9th grade level in finance/econ.

suzanne researched it... said...

What a creep! This guy has done more damage to the US than any other single terrorist could ever dream of. Ownership society a few years back and now this, no ethics or morals apply to him.

-SRI

Anonymous said...

5 years from now when the national median home price falls under $100K 99% of folks who bought in the last 10 years are going to be upside down.

What is the above forcast based on? A contracting economy as consumer credit continues to dryup because banks will be foreced to bring another $5T of bad loans onto their books in Jan 2010.

Anonymous said...

Arnold signs the order.

200K California state workers are now in a total panic. Wage set down to minimum: $6.55 / hour.

20K part time and contract just let go too.

Now, if we could get the money back wasted on the illegals...

W.C. Varones said...

Meanwhile, Greenspan's Body Count hits 37.

Anonymous said...

Based on that quote I'd start buying.. now!!!

Anonymous said...

i think greenspan just quoted fleck.
If so,the universe has come full circle and you need some wings on those pigs.

Ibod said...

Amazing!
You can't make this stuff up...

Anonymous said...

What he meant to say was crime-of-the-century phenomena.

-OR-

The mother of all pump & dump schemes.

With a banking system based on Fictional Reserve Lending, it's no wonder we're up to our asses in alligators...

theloknesmonster said...

Jesus that guy is old. My dead grandfather looks better than he does.

Only 15% of the 12m "house owners" under water are in foreclosure right now?

What happens when a majority of the other 85% walks?

He's so close to the bucket and will never feel the pain anyway so what does he care?

You think Andrea Mitchell ever gets laid?

randy said...

How can you blame Greenspan?
Cause he lowered interest rates?

Aren’t Interest rates low again now? …and house prices are going down..

We here at HP have been screaming all thru the bubble that low interest rates where not the real reason for the bubble.

It was the Realtors who where pushing ‘now is a great time to buy cause rates are low’

Sheeple did not look if they’ll be able to afford the monthly payments.

30 year fixed rates never went down more then about 2% since ’97.

Have we forgotten Greenspans ‘conundrum’

sweet potato said...

Low interest rates was not the cause of the housing bubble..
It was an advanced sophisticated REIC that kept the herd momentum going.
Think someone earning $1000 a month would purchase a home that cost $1,500 cause interest rates are low?.. yes cause so many have no clue about financials.
Its like people buying a house cause of the interest tax deduction, paying $800 a month in interest to a bank and saving approx. $80 a month in income taxes..

Low rates may have been used to feed the flames but it was by no means the cause.

Greed was the casue!

Anonymous said...

This man should be DRAGGED in front of Congress and indicted for criminal charges.

Anonymous said...

No Sh*t Sherlock!

Paul E. Math said...

Greenspan is one incompetent S.O.B.

My only solace is knowing that, given his age, I will likely still be alive when he dies. So I can visit his grave and piss all over it.

Wow, that was a little harsh, huh?

Greenspan had his head so far up his ass with arcane data points that he failed to see the obvious, sitting right in front of him: home prices unsustainably exceeded incomes.

So he believed his own press, he thought he was 'the maestro' creating lasting prosperity. When in fact he created the biggest bubble in U.S. history.

He waterskied behind the genius and courage of Paul Volcker and completely hijacked the economy.

Thanks, Greenie, you're a heck of a guy.

belchorama said...

My, we've come a long way since "there's a bit of localized froth". Back then, people like us got called Chicken Little. Nowadays, people like Greenspan get called a$$hole.

Rational Renter said...

"We're nowhere near the bottom," says Greenspan. He might not yet be willing to admit that it was his (and Bush's) failures that caused this mess, but he's not wrong about how bad it is.

Why Prices Won't Stop Falling.
http://findingbottom.blogspot.com

Anonymous said...

Once in a century. What does that mean?

Both 1995-1999 and 2000-2007 count!!

Sir Alan, Presidential Medalist of freedom, screwed the pooch and still can't even remotely admit how much he personally up-fuxxored the USA.

Hey Al----go Cheney yourself.

Help me Obi-Wan Paul Volcker, you're our only up.

David in Socal said...

well, at least he is right this time. Too bad it is after he created this entire mess.

IMO, our leaders need to start being hung from trees when they deserve it.
Our country is so screwed!! So screwed we many NEVER recover.

Im pissed!!

Anonymous said...

Poor, poor bitter renters. You dimwitts should have bought when they there were giving money out like candy circa 2002/2003 and sold when the party stopped circa 2006/2007. I did and so did millions of others. I think Greenspan is one of the finest people ever. He made me a ton of money. So he fucked over the likes of you, bfd.

Instead of following along in the REIC game, you blogged about how unfair life was. You rented shithole after shithole watching everyone around you get rich. You drove a 1982 Honda while your neighbor was driving a new BMW.

And now you have what exactly to show for it? A huge govt bailout (1st of many more to come) that will keep your neighbor in the BMW using your tax dollars.

Yea you guys sure were smart. Really smart.

tangelo mozilo said...

Ben Bernanke must love this guy . . .

Anonymous said...

I suppose here as as good as any place to post this:

Every now and then I go through the rent verses buy calculator over at New York Times, and each time the price I'm willing to buy a house gets lower.

When I first moved to Philadelphia 500k seemed to be the going rate to get anything halfway decent and rent came in around 1800-2000. Even at 300k it still doesn't make sense to buy.

Beh. Maybe I'll never buy, but for the most part I'm OK with that.

Anonymous said...

>> 200K California state workers are now in a total panic. Wage set down to minimum: $6.55 / hour.

Note to state workers who don't have kids but were planning on doing so shortly: people on minimum wage have no business having children. You can't afford it.

Sorry, but someone FINALLY had to say it.

Anonymous said...

Will this fiasco cause house prices to fall back to 1996 which was the trough here in Ca, or will we go all the way back to the trough of the 1980's?

There are three reason why I think house prices will fall back to the trough of the early 1980's -

1) All the Alt-A and Subprime loans will go bankrupt, include a large portion of prime loans. I'm guessing 70-80% of all combined loans will be forclosed. Especially here in the "Real Estate Always Goes up" bay area.

2) Our manufacturing base has been shipped overseas - there isnt enough service jobs to keep everyone employed. When the economy retracts it affects all the companies who expanded during the credit bubble. More so, than other industries the specialty retailers that service granite showrooms, house contractors, decorators, stagers, realtors, mortagage brokers, bankers, escrow officers, restaurants, banks etc. will all lose their jobs. How will they find work when their industry is consolidating like mad? Just as the economy was expanding during boom times, it will collapse during recession.

3) In order to survive, companies that are left standing will cut salaries and lay off workers.

4) Credit will once again be difficult to obtain like it was in the 1970's.


Ask yourself this: How can house prices ever recover to a fraction of what they were during the runup when all the high paying jobs and personal credit is cut back?

Anonymous said...

Greenspan is suffering a unique but very painful pennance already. Alan has to wake up next to Andrea Mitchell. Can you even imagine what THAT looks like in the morning. Naturl birth control at BEST...

Remember the horses head scene in the Godfather? That would be soothing comapred to HER.

Turn about being fairplay, SHE has to look at HIM too.

See, punishment for both of them, daily.

Compensation, as in Emerson...

Anonymous said...

Everyone has entered the panic mode. Even Bill Miller says he doesn't see a bottom for the financials after two years of buying homebuilders and lenders. I'm not calling bottom, but it's getting close. Rent in my area is almost equal to PITI for a similar home. Prices are around $65sf for decent neighborhoods

Anonymous said...

.


Whats the lyrics to that song?

...to much to little to late to ever try again....


.

Anonymous said...

Greenspan™ : Screwing your stock market rallies since 2006

Devestment said...

Wait! Is this a fake out like "get an adjustable mortgage"???

Anonymous said...

Why Do We Listen to this Man?

Former Fed Chief Alan Greenspan sent the stock market into a tailspin this week after declaring home prices were “nowhere near the bottom.” Just a month ago Greenspan said: “The worst is over in the financial crisis or will be very soon.”

bitterrenter said...

Anon Idiot:

Both sponsors of the repeal of Glass Steagall, Gramm and Leach, were republicans.

In the Senate, the vote was 54-44. One democrat voted for repeal, the rest voted against it. NO REPUBLICANS VOTED AGAINST REPEALING THE GLASS-STEAGALL ACT.

In the house, 5 republicans voted against Gramm-Leach, 51 democrats voted against it.

Trying to blame Clinton, a man so hogtied by a BLOWJOB scandal, is typical of you ignorant piece of crap brainstems.

I really hope all republicans get cancer and die slow, painful deaths.

Anonymous said...

Anon 12:44 go F' yourself.

Some Americans are still moral and don't commit fraud.

Flippers are the creme of the crop in scumbags as far as I'm concerned.

Anonymous said...

Anonymous said...
"Note to state workers who don't have kids but were planning on doing so shortly: people on minimum wage have no business having children. You can't afford it.Sorry, but someone FINALLY had to say it."

Let me get this straight only the wealthy should have children? How Malthusian/Darwinian of you. You are on sick selfish fuck.