Michael Burry Exposes the Incompetence of Alan Greenspan

By on April 5, 2010

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

One Comment

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