Peter Schiff on Alan Greenspan
Thursday, March 25, 2010
Left sitting in my draft folder for a few days are these thoughts from Peter Schiff about the former Fed chairman following his 48-page defense of monetary policy last week. Now seemed like a good time to hoist it up to the main page.
Peter starts off by noting, "He's not just the worst Fed chairman we've ever had, he's the worst American we've ever had" and then works himself up into a little bit of a lather from there on such subjects as the impact of long-term vs. short-term rates during the housing bubble and other topics.
3 comments:
What can you say? The man's right. Most economists have a light bulb go off at some point in Econ 101. Perhaps when the Nixon wage/price controls are discussed. They get it that artificially keeping prices too low just sets up a future explosion in prices. Forces are put into play.
Somehow we find the few economists that don't get this and put them in charge of the nation's money supply. Today we have short-term rates close to zero and markets cheer every time the Fed pronounces that they will be kept there for an "extended period". And investors pile into bonds. And when interest rates skyrocket and inflation starts to pick up everyone will act shocked. As they were when inflation reached double digits in the '70s.
And guess what? Bernanke, et. al. will construct narratives and deny evidence to convince those that are illiterate in economics that it wasn't their fault.
The sad part is that so many good people get hurt through no fault of their own.
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
I AGREE WITH PETER
He's right and the tragedy is that those ARM mortgages he mentions have not even yet run their course - it's these, often jumbo loans, that are only now and all the waythrough 2011 resetting at much higher rates and in all probability will trigger more defaults, and greater defaults as per size of mortgage, than the subprime defaults could ever have for 2lack of" volume!
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