tag:blogger.com,1999:blog-3356197772493765397.post3215338995217018651..comments2023-06-14T07:02:58.527-05:00Comments on The St. Lou Jew: Let It RaineY?http://www.blogger.com/profile/11649272113923397688noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3356197772493765397.post-10557716481017697952008-10-02T11:16:00.000-05:002008-10-02T11:16:00.000-05:00Lucky, I appreciate your comment, and I don't nece...Lucky, I appreciate your comment, and I don't necessarily disagree that Greenspan played a part. I would note though that the reason adjustable rate mortgages were squeezed into foreclosure had a lot more to do with the fact that they were bundled with bad mortgages to make them palitable as mortage backed securities, a practice undertaken by Fannie Mae under Raines. Certainly, Greenspan helped people who couldn't afford mortgages buy them by lowering the rate, but he also helped people who could afford them, a tactic undertaken to stimulate growth in the economy. Had the original strategy to bundle mortgages not been taken, Greenspan's decision would not have had that kind of of negative effect.Sleep Now In The Firehttps://www.blogger.com/profile/15071778677226301293noreply@blogger.comtag:blogger.com,1999:blog-3356197772493765397.post-64371210769961605932008-09-22T14:06:00.000-05:002008-09-22T14:06:00.000-05:00Good thoughts on Raines. Here's one more side of ...Good thoughts on Raines. Here's one more side of the story to consider:<BR/><BR/>The attacks in New York seven years ago spooked the economy, and the stock market lost trillions of dollars in valuation over the year and a half leading up to the occupation of Iraq. The solution of the Federal Reserve, led by Greenspan, was to lower the target rate to 1% and keep it there for a year. Banks were practically giving away money for free! Suddenly, people who formally couldn't afford a mortgage were jumping in with both feet, and the new buying volume pushed up housing valuations dramatically. As rates were readjusted upwards again by the Fed, the same homeowners with adjustable mortgages were squeezed into foreclosure, as their monthly payments double and tripled. If Greenspan wants to weigh in on the problems these days, he should be pointing one of his fingers at himself.Lucky Stuffhttps://www.blogger.com/profile/10406079800704211158noreply@blogger.com