Alan Greenspan has joined the bandwagon of those calling for an idiot bailout.
The former chairman of the US central bank Alan Greenspan has called for government to give financial help for homeowners hit by the credit crunch.
He said direct government help would be a better political solution than fixing house prices or cutting interest rates. Homeowners facing repossession might be helped directly through tax breaks or cash grants similar to those given to disaster victims, he said. "Cash is available," Mr Greenspan told ABC's This Week programme.
Un-effing believable. Cash is not available Alan. Unless you have been living under rock you would know that the federal government has a $10 TRILLION (that's 10 thousand billion for those of you who gradumalated from a publik skool recently).
And of course the one thing Alan doesn't mention is that he pretty much caused this to begin with. He lowered rates to 1% in 2003. And he was the man who in 2004 said "American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage". How did that all turn out Mr. Greenspan? And his good friend also working at the Fed had this to pontificate:
Innovative programs eh? Like no money down, interest only, negative option programs? The kind of programs that are now causing millions of foreclosures? Is that the stuff you had in mind Joey? Unreal. These people caused the problem. Instead of taking responsibility and saying yep, I messed up, sorry, they are giving yet more advice. Alan, Joey, we don't need any more advice from you. One major economic fuck up per decade is all you get. Go away. Please.
Joseph McKenzie, deputy chief economist at the Federal Housing Finance Board, says buyers like the stability of fixed-rate mortgages, but there is increasing flexibility in products. "There are lots of innovative programs, especially targeting low-income and first-time buyers," he says.
So Alan is once again calling for a reward to those who lied, cheated and stole at the expense of those who played by the rules. This on top of the two bailouts already in the works thanks to the Worst President Ever and the even worser yet to come, Hillary Clinton.
This country is turning into a 3rd World banana republic right before my very eyes. As I mentioned a while ago I was in D.C. and did the whole tourist thing. While walking around seeing the monuments, absorbing the history, I kept thinking man what the hell happened. How did such a great concept of a country turn so bad in such a short time? Washington would be getting ready to lead a new war of independence if he saw what had happened.
Hey but as long as E! and MTV broadcasts the daily happenings of Brits and Paris, who cares right? As long as America's Next Top Model stays interesting, why worry? We live in an era where people will cast a vote for president based on who Oprah recommends. And Alan Greenspan is seen as a hero to most because the talking heads on CNBC say so.