What is Digg?89 Comments
- rebelcapitalist, on 04/08/2008, -6/+50I am getting a little tired of these bombs that Greenspan keeps dropping about our economy. Especially, since many of the problems today began under his watch.
- kingp, on 04/08/2008, -0/+18Bernanke has very little to do with the current financial state of our country. Greenspan was the one that allowed this mess to go on...
- eightballrj, on 04/08/2008, -0/+9Maybe out of this will come a nation that is more scared of credit? Maybe we will learn that if we cannot pay for it now, we don't need it?
- Coded1, on 04/08/2008, -1/+8Don't you wonder why your country has all these credit problems? Well lets take a look shall we?
Credit has to be given by someone to someone, right? Banks are trained to only lend to those who they can recover from. If you have no money and only a minimal income should a good lender give you a mortgage?
There are 2 involved in this dance. To say your whole country kinda got misjudged all at once sounds a bit far fetched doesn't it?
On top of it all who do you think makes all the interest rates? The Fed? Yup! Who tells the banks how much to loan out? The Fed? Yup!
So why are the banks making all these poor lending decisions in such a controlled and predictable monetary system(compared to gold apparently)?
That's the million dollar question ;) - americangoy, on 04/08/2008, -6/+12Shorter article:
Due to unscrupulous lenders, greedy CEOs who run their companies into the ground for short term profits and bonuses (cough Caney at Bear Stearns cough) and most Americans, by virtue of being dumb OR HAVING A SICKNESS IN A FAMILY, are DEEP in credit debt...
we are in a world of doo doo, to use the official financial lingo... - inactive, on 04/08/2008, -0/+6He the ***** ***** that helped cause this mess! Along with the Bush regime.
http://ca.youtube.com/watch?v=GMo7T9t0Gzk - Radigg, on 04/08/2008, -1/+7A lot of experts believe Greenspan is partly responsible for the credit crisis, perhaps he should stop these predictions!
- Olfster, on 04/08/2008, -0/+5Anyone remember Greenspan saying, in 2003/2004, that if people had bought homes with ARMs they would have saved considerably over the previous 5 years compared to those who did not. After that ARMs were used to mortgage everything. I wonder how often this was used as a mortgage brokers sales tactic to get someone to take an ARM. I somehow doubt the savings were worth your inability to continue servicing the loan.
- diggerphelps, on 04/08/2008, -0/+5Turns out the last laugh may be on the rest of us.
It appears there are so many ***** deadbeats out there, that the system can't deal with all of them.
So they get to keep the houses, and the boats, and the cars, etc, while they sort this mess out.
And after it's sorted out, there will either be so many people with 'bad' credit that the stigma will be gone, or because no one (China, Euros, Arabs) will want to lend money in the States again, having 'good' credit won't be any great benefit for those who cared to maintain it.
Extreme scenario, I know, but entirely possible. - kingp, on 04/08/2008, -0/+5While this is true, from a consumer standpoint...what is reality is that businesses (namely Wall St) doesn't practice the same thing. They make reckless decisions and investments, and then whine and complain to the Gov't to bail them out.
As a consumer, I have NO ONE I can turn and run to for help. Pretty soon it's going to get to the point where I work just so I can buy gas to GET to work. It's time to take that good Gubm't check in May and buy a bicycle. - manstein01, on 04/08/2008, -0/+5this coming from the guy who lowered interest rates and inflated credit markets beyond reason. When asked about it by Congress, he proclaimed that it was nothing more than "democratizing credit." Now he's going to swoop in, and proclaim problems that were obvious to many (himsefl excluded) five years ago.
F you Greenspan. You are a fraud. - inactive, on 04/08/2008, -0/+5it's true. greenspan did in fact predict the housing crisis, but he didn't think it would become as overblown as it is now, with the subprime woes extending to the broader economy.
- inactive, on 04/08/2008, -3/+7"Although a 'bubble' in home prices for the nation as a whole does not appear likely, there do appear to be, at a minimum, signs of froth in some local markets where home prices seem to have risen to unsustainable levels."
-Alan Greenspan
June 9, 2005, testimony to Joint Economic Committee
Well, I guess he was partially right... It's not the nation as a whole; instead it's the world as a whole.
http://www.ft.com/cms/s/0/5196933c-0410-11dd-b28b- ... - brstilson, on 04/08/2008, -0/+4Amen! No one ever addresses the problems with the gold standard. Nixon stopping it may have been surprising, but it was coming anyway. Ron Paul-ites seem to have this vision where everything was just GREAT before 1913 economically. They don't bother to learn about the frequent bank panics and periodic recessions that led to the formation of the Federal Reserve.
"value" is something completely subjective anyway. Gold is only valuable because we say it is. - inactive, on 04/08/2008, -5/+9and what exactly makes you think that gold is a stable currency? and what about the deflationary problems that the gold standard could bring? we had the gold standard during the great depression, and most economists would agree that it only made the problem worse by adding deflationary pressures on the economy. i'm tired of these gold standard proponents that don't back up their claims with anything other than ron paul or some economist that died 30-100 years ago. modern economists don't want the gold standard.
- inactive, on 04/08/2008, -1/+5his name is cayne, not caney. but either way, i heard that he cashed-out. although he lost a lot of money, he still went away with $61 million, which is much better than it could have been. especially since he was smoking pot on the job, and he didn't even show up to a board meeting for months. but i do find it amazing that he managed to smoke pot and become a bridge champion at the same time, while also playing golf about every day. not a good ceo, though.
- cmccool, on 04/08/2008, -3/+7agreed. why should we care what he has to say? his praddle is becoming very annoying!
- neozeed, on 04/08/2008, -3/+7Let me guess, dump the USD & OMG our economy is screwed because of Greenspan's "free money for idiots (bankers & consumers).
Yeah thanks a lot Greenspan for creating this & for helping us lose 60% of our value vs the EUR.
What a freaking traitor. - linkerjpatrick, on 04/08/2008, -3/+7The big problem is the combination of greedy credit card companies and stupid consumers. Too many idiots use credit cards for "free money" to live a lifestyle they haven't earned.
- diggerphelps, on 04/08/2008, -0/+4So you're saying this is DooDoo Economics?
- andreegal, on 04/08/2008, -0/+3Agreed, this "people living beyond their means, so blame them" crowd sound like federal reserve apologists, or future elitists who will try and fail to manage "people's irrationality"
- wattersm, on 04/08/2008, -0/+3Yeah, if the U.S. goes down a lot of other countries are going down with it. China, Mexico, etc.
- inactive, on 04/08/2008, -3/+6I hate to differ with you guys, because you all sound very logical, but it's not just the US that is in turmoil, but the World. Everyone places the blame on the leader.
- roosevans, on 04/08/2008, -2/+5I am leery of going back to the gold standard as well. When America is no longer in a deficit budget and our economy is back on track our dollar will rise in value. In my opinion a nation's GDP is a better standard than the amount of gold it owns!
- BESTenemy, on 04/08/2008, -0/+3Everyone holds dollar reserves. Everyone wants to do business the American way. Everyone wants to invest, construct bubbles and get out just before the burst. The few the hold the capital are able to pull it off. The rest are just passive observers.
The world is at the mercy of the world's biggest debtor - the US. When the guy that owns you money dies, you both loose. - inactive, on 04/08/2008, -2/+5Kill the FED, or the FED will end up KILLLLLLING us.
- sahaqiel, on 04/08/2008, -1/+4Why don't you learn more about the Federal Reserve yourself ?
Here is the link to "Money Masters" : http://video.google.com/videoplay?docid=6076118677 ...
I'd guess Paul-ites just don't like having the government / bankers influence their currency for the elite's own benefit, but what do I know... - andreegal, on 04/08/2008, -0/+3makes a lot of sense, I stopped arguing about economics just because people are to dumb to see what's really going on, or people defend it because the system provides certain contort which taps into the laziness gene. As you said people need to be hit hard in order to wake up.
• From bondage to spiritual faith;
• From spiritual faith to great courage;
• From courage to liberty;
• From liberty to abundance;
• From abundance to complacency;
• From complacency to apathy;
• From apathy to dependence;
• From dependence back into bondage.” - roho76, on 04/08/2008, -0/+3"I don't know what's going on but I'm going to bitch about other peoples attempts to figure it out. I'm just going to blow everything off and hopefully if everything come crashing down around us they (the Elite) will keep nascar running. I sure do like that Billy Bob driving cars in circles. Now that's Merican." - ColonelJessup
- inactive, on 04/08/2008, -3/+6our money is worth something just due to the fact that the government demands it in the form of taxes. plus, we can buy things with it. but even in the event of a total economic collapse where everyone stashes money under their mattresses, the dollar will still have some value because the govt wants it.
- slantyeyed, on 04/08/2008, -2/+5if people didn't spend more than they make / live within their means, we wouldn't have this problem. there are plenty people in this country who live within their means and aren't suffering like the media says.
- TYRONEBR549, on 04/08/2008, -4/+6Don't worry folks I'm sure that the World Banks and the World elitists have everything under control. If they don't they will have just as soon as they finish off the world's present economy. Martial Law, V- chips, socialists run programs etc. It will be alright just go back to sleep it will all be over very soon. Then a Utopia for them and hell for the rest of us. Got Jesus yet?
- Olfster, on 04/08/2008, -0/+2With the new laws being considered to help people, now that it is in forclosure the buyer that held out for it to go into forclosure just got a tax break. Makes sense if your a buyer to not buy a home until it is in forclosure. Just watch and wait. What geniuses we have for elected officials. At least the tax breaks for the homebuilders will get them to start building more homes to furthur compete with the people that need to sell their homes to avoid forclosure in the first place.
- alpinecow, on 04/08/2008, -0/+2cayne was no longer responsible for day-to-day operations at bear since he retired as CEO. although he certainly could have played a more helpful role in bear's final days, don't forget that he was largely responsible for building the firm from an also-ran to one of the "big 5" brokerage houses. if you're going to charge him with bear's fall, at least credit him with its rise as well.
- faskippy, on 04/08/2008, -1/+3Amen to that. I'd be laughing at all those stupid asses I knew in Cali, if I didn't have pity on them. $600K+ houses, boats, 4 wheelers, 50K trucks, toys. On 80K salaries. Tsk, tsk. Poor saps. But, no one twisted their arms.
- oldhick, on 04/08/2008, -0/+2So which economies around the world use the gold standard?
- olenick, on 04/08/2008, -0/+2Visit South FL. There are plenty of people who purchased houses they can afford, took out entirely reasonable mortgages, put down respectable down-payments, live in their house, and now owe much more than their home is worth. They can afford their mortgages so they aren't being foreclosed on, but have a large liability though they've done essentially nothing wrong. They could have rented but the tax consequences of that, combined with high rents and fear of being priced out of the market eventually, made buying an affordable home a prudent choice.
- insanebrain, on 04/08/2008, -2/+4-"'the global situation of economy is interweaved. so..."
Yeah .. it's interweaved. . so Greenspan MUST be wrong. Do me favor. . .go back to sleep and stop posting useless crap. - mkonjibhu43, on 04/08/2008, -0/+2Amazing, isn't it?
- banmaster, on 04/08/2008, -0/+2Pity it wasn't so sharp when he got us all into this mess in the first place!
- inactive, on 04/08/2008, -0/+2http://themessthatgreenspanmade.blogspot.com/2008/ ...
- Hangly, on 04/09/2008, -0/+2"With the formed state having finished its course, high history also lays itself down weary to sleep. Man becomes a plant again adhering to the soil, dumb and enduring. The timeless village and the "eternal" peasant reappear, begetting children and burying seed in Mother Earth.. Men live from hand to mouth, with petty thrifts and petty fortunes and endure..."
-- Oswald Spengler, Decline of the West - Coded1, on 04/08/2008, -0/+2You should read about the FED http://en.wikipedia.org/wiki/Federal_Reserve_Syste ...
Gold was actually used as currency until 1911 until the federal reserve act was singed in by Woodrow Wilson. The banks ***** you back then too. The problem at the time was banks were very small and they would lend money as it was deposited. If word came around that the bank was having problems balancing people would rush to the bank trying to withdraw as much money as they could before the bank went bankrupt, this gave us the term "bank run".
This made it very difficult for banks to grow because people of differing interests could just say your bank is going under and you would be mobbed by your account holders. The Federal reserve system was supposed to be set up so that if someone ran into a similar problem the Fed would extend credit to the banks to cover the withdraws giving them a chance to recoup their money lent out.
If you keep on reading about the Fed you will see that the great depression was actually caused by the Federal reserve since they actually decided not to bail out the banks when the stock market crashed. People again ran to their banks to get their money but the Fed just stood by idly while the banks went under.
They even went one step further with http://en.wikipedia.org/wiki/Executive_Order_6102 . This order demanded that everyone who had gold was first prohibited from using it to trade for goods and it also demanded anyone who had gold in more then very small amounts were required by law to turn it into banks in return for about $20/ounce, just to bring it up to $35/ounce killing the value of the money that everyone just gave up their gold for.
Read grasshopper, read - inactive, on 04/09/2008, -0/+2Greenspan ought to know. He made the crisis by holding interest rates too low for too long in the early 2000's.
- BESTenemy, on 04/08/2008, -0/+2The system is engineered perfectly. The issuer of currency produces absolutely nothing. Recollects physical assets as collateral for fiat currency loans, having wasted nothing but paper and ink. Sells the property temporarily only to those able to pay off the debt with interest, but then eventually gets the property back as it already owns all the land the property is sitting on.
The system starts off with people owning the land. The system ends with the bank owning all the land and having people pay for the right to stand on it. We're pretty much at the end of the economic acquisition era. This used to be our continent. Now it belongs to the bank. It won't sell it back. It'll only rent it and we'll have to pay for it over and over again until we rise up and take it back violently...
... but things have to get a lot worse before they get better. It's nowhere close to being bad, and even if it was, we're too lazy to react. We've been bread into obedient sheep. We fear responsibility. We'd rather get exploited and lied to than take control.
Those that aren't willing to fight and die for their liberty deserve none. - oldhick, on 04/08/2008, -0/+2A lot of countries used to. We used to...
- Hangly, on 04/09/2008, -0/+2v-chips paid for with what? Pelts?
I think you'll find that it's difficult for a government to implement grandiose totalitarian programs when it's bankrupt and no one will lend it money.
The one-world-government plot isn't expanding, it's unraveling. The future is pretty grim, but at least you can be sure it won't be the Total Control Matrix dystopia. Think more along the lines of a repressive banana republic. - Hangly, on 04/09/2008, -0/+2That's what the country was like right after the Great Depression. For a long time after that average working people wouldn't go near the stock market. From the 40's to the 60's we were a nation of savers.
Look around the world, it's always the frugal, careful societies that become powerful. The US in the 50's, Japan in the 70's, and China today. - Hangly, on 04/09/2008, -0/+1The damage is pretty much done.
-
Show 51 - 89 of 89 discussions
Check out the new & improved 
© Digg Inc. 2009
— Content created and posted by Digg users is