CLINTON AND THE SUBPRIME MESS
Alan Greenspan was the one who suggested that Americans buy into subprime mortgages during the period of low interest rates. He's the one that pretty much started this whole subprime mess with his comments below:
And Bob Rubin, of Citigroup, is facing the credit crisis as well along with the subprime loan mess. So why put someone with a clear conflict of interest on such a panel? This puts into question Clinton's judgement about people she says would solve problems, when those same people have been complicit in the original problems!"Innovation has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants. . . . With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. . . .
Where once more-marginal applicants would simply have been denied credit, lenders are now able to quite efficiently judge the risk posed by individual applicants and to price that risk appropriately. These improvements have led to rapid growth in subprime mortgage lending . . . fostering constructive innovation that is both responsive to market demand and beneficial to consumers." (emphasis added)-Remarks by Chairman Alan Greenspan on Consumer Finance
At the Federal Reserve System’s Fourth Annual Community Affairs Research Conference, Washington, D.C. April 8, 2005
Article Here
Spot on.
Judgment? Character?
Try Pandering. She is recommending putting the fox in charge of the hen house, after the fox let his buddies in for snack time.
March 24, 2008 10:47 AM | Reply | Permalink
Greenspan, no less, who turned into a Bush ass-kisser. She's really crazy to bring him up.
March 24, 2008 10:53 AM | Reply | Permalink
Plus Mark Penn used to work for Countrywide. How does that make sense in light of her economic speech and plans?
March 24, 2008 11:18 AM | Reply | Permalink
Keep this pushed forward I believe this might be a bigger story than many others due to the overwhelming story coming from voters around the country, "It's the economy stupid!"
I mean no offense to Alan Greenspan as a person or to Citibank as a financial institution but I fail to see how him being a part of the problem in the first place is thus part of the solution? I mean what do we have here, an elite group who no matter what the results gets to try out their ideas at the mercy of all of us intellectual nitwits who know nothing of the economy. I am not blind to the fact that there have been murmurs in the financial community that a full on bubble was building and could possibly cause a collapse in the mortgage banking industry. Bad lenders or bad borrowers it is the gatekeepers of fiduciary responsability and regulators who have chosen business over prudence and left us all dealing with this mess whether we are culpable or not. The head honcho at that table during this time, Greenspan!
March 24, 2008 11:56 AM | Reply | Permalink
Keep this pushed forward I believe this might be a bigger story than many others due to the overwhelming story coming from voters around the country, "It's the economy stupid!"
I mean no offense to Alan Greenspan as a person or to Citibank as a financial institution but I fail to see how him being a part of the problem in the first place is thus part of the solution? I mean what do we have here, an elite group who no matter what the results gets to try out their ideas at the mercy of all of us intellectual nitwits who know nothing of the economy. I am not blind to the fact that there have been murmurs in the financial community that a full on bubble was building and could possibly cause a collapse in the mortgage banking industry. Bad lenders or bad borrowers it is the gatekeepers of fiduciary responsability and regulators who have chosen business over prudence and left us all dealing with this mess whether we are culpable or not. The head honcho at that table during this time, Greenspan!
March 24, 2008 11:57 AM | Reply | Permalink