Quote:
Originally Posted by Slipknot
Did Greenspan do this on his own?
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pretty much. he opened the floodgates when a hedge fund - Long Term Capital Management - blew up in 1998. there was a lot of wall street money tied up in that thing, and wall street was clamoring for greenspan to help bail wall street out. these insitutions should have been forced to take losses. that's capitalism. you take a risk, you reap the rewards or loss. if the fed bails you out by loaning you easy money, that's socialism for wall st.
this helped spur the dot.bomb stock mania a few years later. and then he slammed on the brakes too hard trying to cool it down. idiot.
then right after 9/11 he opened up the floodgates again. causing this housing mess (cheap money = everybody wants to flip real estate).
there's more, but that's the long and short it.