Michael Burry Exposes the Incompetence of Alan Greenspan

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It is at the same time laughable and galling that Alan Greenspan insists that no one saw the housing market as a bubble in 2004-2007. One who did, Michael Burry, comments on how he, along with many others, saw what should have been obvious to the powers that were.

As a nation, we cannot afford to live with Mr. Greenspan’s way of thinking. The truth is, he should have seen what was coming and offered a sober, apolitical warning. Everyone would have listened; when he talked about the economy, the world hung on every single word.

Unfortunately, he did not give good advice. In February 2004, a few months before the Fed formally ended a remarkable streak of interest-rate cuts, Mr. Greenspan told Americans that they would be missing out if they failed to take advantage of cost-saving adjustable-rate mortgages. And he suggested to the banks that “American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.”

Source: The New York Times
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