Future of Housing Finance

[RIJIMMY]

i for one am glad wee wee is back

[fishpoopoo]

Originally Posted by spence

The low rates were a response to economic conditions largely influenced by the market. Certainly you could argue this was a wrong move, but it's not like the government was setting policy in a vacuum.

It's also not like investors are altruistic, they're trying to make money. Whatever is legal is fair game. Hence my comment about the market exploiting the room to move.

I'm not blaming the markets or investors, the entire thing was a gigantic fuster cluck.

-spence

The low rates were an idiotic move, Spence.

Alan Greenspan kept interest rates to near zero percent from 2001 through 2004.

However, the economy already started recovering in November 2001! He should have raised rates starting then.

Greenspan's actions were the primary reason why we had bubbles in housing and other areas.

[fishpoopoo]

Originally Posted by spence

It's also not like investors are altruistic, they're trying to make money...I'm not blaming the markets or investors, the entire thing was a gigantic fuster cluck.

-spence

I blame investors, but not in the way you might think.

Imagine this conversation between the head of a large global investment bank and Fed Chair Alan Greenspan:

Boss of Goldman Schmucks: "Hey Alan. We're under water. You have to help us out and lower interest rates."

Alan Greenspan: Uh, okay. Sounds like a plan.

Goldman Schmucks: "Get to it!"

Alan Greenspan: "Right oh! Rates to zero percent pronto! I'll start printing money right away."

This is a simplification of the process, but that is basically the way it happened.

If folks understood the nature of the Federal Reserve (it is NEITHER) ... folks would understand what a corporatist scam this operation is.

The Federal Reserve is a PRIVATELY OWNED BANKING CARTEL which exists for the BENEFIT of its shareholders.

Who are its shareholders?

THE BANKS.