Monday, September 22, 2008

Interesting.

Apparently, two big money-losers in the AIG collapse were two big names in government: Speaker of the House Nancy Pelosi, and Senator John Kerry.  And those are just the names of big investors that have been released.

Europe is alternately gloating and concerned with our meltdown.  They're gloating because they're blaming American capitalist greed for America's market shennanigans last week, and concerned because, quite frankly, each and every major market in the world is tied to ours.  If we go down, so do most of them.  

Many, Europeans and Americans alike, also--and rightly, to a certain extent--blame then-Federal Reserve Chairman Alan Greenspan for the current market issues.

However, Greenspan's policies did not force the subprime mortgage market gates wide open.  The Federal Reserve isn't responsible for setting policy on housing.  No, Greenspan's fault lies solely in that he cut the interest rates banks charged one another so low, kept them there so long, and declined to do anything about the growing "irrational exuberance" (to use his own phrase about another financial bubble) regarding investments backed by mortgages, both good and bad.  

In any case, the time for laying blame is past.  Or, if not, a useless exercise in arguing who missed seeing the iceberg until the Titanic hit it.  We need to figure out what to do now, and how to stop our politicians from more and more large company bailouts and seizures.

3 comments:

  1. Okay, Okay, my is breaking for Kerry and Pelosi NOT. They are big boys or girls who knew the risk of investments. After all they work in the government, no.

    Well, don't cry for Greenspan everything he did while Chair of Federal Reserve is coming back to bite his A**.

    Wait we are not finished yet, now we must bail out European mortgage problems and let us not forget the rest of the world. Do you hear the Crash of our financial institution coming?

    The U.S.A is the problem for the worlds ill. Not to forget the now European is gloating over all of this. Humm, makes you wonder about some of our allies that will kick you when you’re down.

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  2. The government jsut wants to literally own the country so that they can control everything. Then again I've been told I'm paranoid.


    The Sibling

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  3. Actually, Sib, it's not paranoia if it's the truth. The current bunch of idiots running the house and senate, Dem & RINO alike, think that the only reason the Soviet Union communist system failed is that they weren't running it.

    -h

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