He really has one helluva nerve. He talks about bear stearns scaring the market and how they shouldn't say anything.
No one says more each day than that joker to try to manipulate whatever it is he's talking about.
With that said though, I really agree with him. The fed needs to act right now by lowering rates to calm this market.
People with adjustable rate mortgages are going to get killed because of all their increases the last couple of years.
And, that's just going to hurt this whole economy even more when they can't pay them.
Also, I think Bear stearns was dead on accurate.
The credit markets are in shambles unlike anything seen in 2 decades.
I truly am sorry for ahm investors. But I think there's plenty more who are going to suffer this before it all shakes out.
When he mentioned something about Greenspan talking people into adjustables...
well, maybe about 5 years ago when rates were hitting rock bottom I remember a report put out by him saying that lots of people are paying too much by going for fixed when they could be in lower rate adjustable.
But, Greenspan never advocated for interest only loans, 100% LTV terms, nor any of the real-estate-craze driven mortgage products & ideas.
I would fault him for thinking the average bum out there can predict the economy well enough to feel safe in an ARM. Does he think we're psychic? Does he know with certainty which way the economy is headed? He's the head of the Fed and he thinks we can figure out when he is going to raise rates and when he will stop? If Greenspan wanted us in ARMs back then, he should be issuing reports on when it is safe to do so and when to refi them to fixed. Since he would never do that, he should have kept his mouth shut.
I am a Greenspan Fan. (another thing I fault him for... not popping the internet bubble earlier)
His shady past is biting him in the ass.
He got his tit caught in the wringer and he's squirming
like the weasel he is. Life is good sometimes.
All the people he screwed is coming back to haunt him.
Payback is a BEEEECCCCCHHHHHH!!!!!!!!
Fire and brimstone coming down from the skies. Rivers and seas boiling. Forty years of darkness. Earthquakes, volcanoes...The dead rising from the grave. Human sacrifice, dogs and cats living together - mass hysteria