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Evil comedic genius
Monday, September 24, 2007
Everyone loves a good Greenspan cartoon. Why is that? This one from Salon on the housing bubble and tax cuts is particularly good - it's mostly the penguin talking.
A tip of the hat to AD for this gem.
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2 comments:
Far be it for me to defend Greenspan but I think ,in the case of the ARM recommendation, he has gotten a bad rap.
Greenspan's point (as I understand it) is that a fixed rate mortgage includes an implied 30 year put option (ability to refinance) the cost of which is in the rate structure. If someone is planning to sell after a few years the price of the put (higher interest rate) might not be worth the benefit. Greenspan was not recommending ARM's for everyone all the time.
Greenspan was not recommending ARM's for everyone all the time. -nc jim
True. Greenspan was recommending ARMs for everyone in February of 2004, just before he started hiking up the Federal Funds Rate from 1.00 to 5.25. Anyone holding an ARM 3 years from the point at which Greenspan recommended it would have been screwed, and Greenie knew it. Further, he knew they'd have to refinance, bestowing even more money in the form of fees to banks.
That would be positively criminal if Greenie worked for a bank...
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