[Travis McGee]

“Derivatives have permitted financial risks to be unbundled in ways that have facilitated both their measurement and their management…. As a result, not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient.”~~Alan Greenspan, May 2003

"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage."~~Alan Greenspan, February 22, 2004

“The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions.”~~Alan Greenspan, May 2005

"We're not about to go into a situation where (real estate) prices will go down. There is no evidence home prices are going to collapse."~~Alan Greenspan, May 21, 2006

“The damage from the subprime market has been largely contained. Fortunately, the financial system and the economy are strong enough to weather this storm.”~~Richard Fisher, Federal Reserve Bank of Dallas President, Apr 4, 2007

"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system."~~Fed Chairman Ben Bernanke, May 17, 2007

[GOPJ]

Thanks for the ping.

[nicmarlo]

Economists call the disease "stagflation," and they're worried it might be coming back.

You know, I've been thinking, Travis, with all those "proclamations" made by Bernanke, Greenscam & Co., they should hire someone like Baghdad Bob. The propagandist would be just as effective.

[AndyJackson]

What is this “might” BS. Does helicopter Ben have a mighty-mouse in his pocket?

[Texas Songwriter]

Travis,

You seem to know the truth about over the counter derivitives. It is amazing that these etherials have even been allowed to exist. They will be our economic undoing.