01-02-2009, 06:08 PM
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#32 (permalink)
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| Senior Member
Join Date: Jul 2005 
Posts: 12,653
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The subprime mortgage industry collapsed in March 2007, with many of the largest lenders filing for bankruptcy protection in the face of spiraling foreclosure rates. For these reasons, Greenspan has been criticized for his role in the rise of the housing bubble and the subsequent problems in the mortgage industry,[58][59] as well as "engineering" the housing bubble itself:
It was the Federal Reserve-engineered decline in rates that inflated the housing bubble … the most troublesome aspect of the price runup is that many recent buyers are squeezing into houses that they can barely afford by taking advantage of the lower rates available from adjustable-rate mortgages. That leaves them fully exposed to rising rates. —BusinessWeek, July 19, 2004, Is A Housing Bubble
About To Burst?[60] George Soros and Warren Buffett criticized derivatives while Greenspan defended them.[61] | Alan Greenspan - Wikipedia, the free encyclopedia
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