Free Republic
Browse · Search
Topics · Post Article

Skip to comments.

U.S. panel sifts subprime wreckage, blames Greenspan (MSM covering for corrupt politicos w/agendas)
Reuters on Yahoo ^ | 4/7/10 | Kevin Drawbaugh and Glenn Somerville

Posted on 04/07/2010 4:34:52 PM PDT by NormsRevenge

WASHINGTON (Reuters) – The wreckage of Wall Street's subprime mortgage machine was laid bare on Wednesday by a U.S. congressional panel that pointed the finger at Alan Greenspan for not stopping it from running out of control.

The former Federal Reserve chairman -- once revered as the oracle of economic wisdom -- defended his legacy before the panel, which also heard a former Citigroup (C.N) executive say he had warned of the subprime danger.

The Financial Crisis Inquiry Commission kicked off three days of hearings with a look at securitization of subprime mortgages, in which risky home loans were bundled and resold in the secondary debt market.

At the peak of America's real estate bubble, Wall Street firms were securitizing huge amounts of subprime loans, putting bad assets on financial institutions' books and unmanageable debts on the shoulders of many homeowners.

It all came crashing down two years ago, triggering a devastating wave of foreclosures, paralysis in capital markets, and the worst financial crisis in generations. Since then, the market for subprime mortgage debt has virtually vanished.

"The Fed utterly failed to prevent the financial crisis," said commission member Brooksley Born at a hearing where Greenspan, other regulators and banking executives testified.

In reply to Born and other commission members, Greenspan, who is 84 and retired as Fed chairman in 2006, said:

"Did we make mistakes? Of course, we made mistakes ...

"Managers of financial institutions, along with regulators, including but not limited to the Federal Reserve, failed to comprehend the underlying size, length and potential impact" of market risks that contributed to the 2007-2009 crisis.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government; Politics/Elections
KEYWORDS: greenspan; sifts; subprime; whitewash; wreckage
Navigation: use the links below to view more comments.
first previous 1-2021-27 last
To: Daisyjane69

The blame isn’t as widespread as it superficially seems. The people responsible are trying to point at the ones downstream for repackaging bad loans, but the culprits were those that encouraged, mandated and wrote the bad loans. Together with those who wroted laws setting up Freddie and Fannie, putting the US taxpayer on the hook.

21 posted on 04/07/2010 6:03:27 PM PDT by qwertypie
[ Post Reply | Private Reply | To 20 | View Replies]

To: NormsRevenge
Greenspan, the "irrational exuberance," man.

I'm sure he came up with that description while in bed with Andrea.

Now I have to scrub my brain with a wire brush and bleach...


22 posted on 04/07/2010 6:38:23 PM PDT by M Kehoe
[ Post Reply | Private Reply | To 1 | View Replies]

To: qwertypie

So true. The derivative market was the bottom line that gave the government enterprises the capability to sell off the bad loans. It’s really a funny kind of Ponzi scheme. They put blinders on the watchdogs and then went into business selling bad paper. All it took was a breathing bag of skin that could successfully sign a loan application. If dogs and cats could have signed the loans they would have done that too. If they could transfer those bad loans somewhere they could not have screwed us. But they had that covered. They made a law preventing any government agency from monitoring that market. That was a Clinton administration & congress that did that. Remember how home ownership was the big achievement? You have to love our government when it does what it does the best. It took suckers to take out the loans and lending institutions like the two government enterprises to create this freight train disaster.

23 posted on 04/07/2010 7:08:33 PM PDT by dangthis
[ Post Reply | Private Reply | To 21 | View Replies]

To: NormsRevenge
Subprime Disaster: President Clinton Takes Credit (1 minute video)
24 posted on 04/07/2010 9:55:38 PM PDT by retrogo
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge

Greenspan is just a convenient scapegoat here. The real cause of the collapse was Congress, in particular the democrats and little corrupt fascists like Barney Frank and Christopher Dodd.

25 posted on 04/07/2010 9:57:16 PM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NormsRevenge


‘How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis’

By Wayne Barrett (8-5-08)

There are as many starting points for the mortgage meltdown as there are fears about how far it has yet to go, but one decisive point of departure is the final years of the Clinton administration, when a kid from Queens without any real banking or real-estate experience was the only man in Washington with the power to regulate the giants of home finance, the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), better known as Fannie Mae and Freddie Mac. . .

26 posted on 04/07/2010 11:26:32 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ledzep
Yea, CNBC can do programs to blame their political enemies just fine.

But do they ever blame themselves? The financial press?

Never. They never do their duty when it counts.

The press spends too much time protecting their pols, instead of the public.

27 posted on 04/07/2010 11:38:03 PM PDT by roses of sharon (I can do all things through Him who strengthens me. Philippians 4:13)
[ Post Reply | Private Reply | To 19 | View Replies]

Navigation: use the links below to view more comments.
first previous 1-2021-27 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794 is powered by software copyright 2000-2008 John Robinson