How Alan Greenspan Destroyed America

[Gabriel_Bell]

I observe that 13 years have passed since this guy claimed that Alan Greenspan destroyed the United States.
However, I live in the United States in 2024 and I was also here in 2011, and I observe that this country has not actually been destroyed.

Is Janet Yellen a better Fed Chair than Greenspan? YES! Undeniably.

 

[iamwhatiseem]

Alan Greenspan is one of the handful of people responsible for the mortgage crises of 2008.
He is also responsible for the "debt as income" mentality of the Federal Government, as well as his policies are what also made it possible for the "debt as income" mentality of that entire generation.
In the 1980s-2000s - it was VERY common for average Americans to be carrying 5 digit credit card debt.
Between Greenspan and Larry Summers, they built the investment bank strategy to spread their consumer debts into investment "opportunities" so the losses would be absorbed by investors (many a 401k people had, were full of these hidden debts)
This dramatically increased banks raising credit card limits higher and higher as they spread the losses out so average Americans, in effect, paid each others debts off.
This is the "treat debt as income" mentality that still lingers today and why America is over $40 trillion in debt.

 

[Phoenix68]

Alan Greenspan is one of the handful of people responsible for the mortgage crises of 2008.

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KEEP SWINGIN', ROOKIE!!!!!
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See: 4:45 thru 12:00
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[Phoenix68]

Between Greenspan and Larry Summers, they built the investment bank strategy to spread their consumer debts into investment "opportunities" so the losses would be absorbed by investors (many a 401k people had, were full of these hidden debts)

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You don't give your fellow-rookies enough credit......
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[Gabriel_Bell]

I was never a fan of Alan Greenspan, but the truth is that he did NOT destroy America.

 

[iamwhatiseem]

I was never a fan of Alan Greenspan, but the truth is that he did NOT destroy America.

Youtube providers love to use overly dramatic words like "destroyed" "annihilates" etc.
Greenspan didn't "destroy" America, but he did tremendous damage to us, and all the while the media couldn't stop themselves from worshiping the ground he walked on.
Greenspan is too smart and detailed to NOT know what he was doing was going to cause irreversible problems later.
He engaged in an economic principle of using debt as income to grow the economy. And of course it worked. It is what created the 80s-90s boom. He was lauded for it. Meanwhile plenty of economist were saying this is insane, but no one wanted to talk to them. If you spoke against the "God" Alan Greenspan - you were a pariah.
And now we have today. No one wants to talk about Greenspan anymore, and haven't for years. They were all making a killing off of the market growth of his policies and future be damned.

 

[Phoenix68]

He engaged in an economic principle of using debt as income to grow the economy. And of course it worked. It is what created the 80s-90s boom.

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You're not a big fan o' the facts, huh???
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"Not only was the entire national deficit eliminated after raising taxes on the wealthy in 1993, but the economy grew so fast for the remainder of the decade that many conservative economists thought that the Fed should raise the prime interest rate in order to slow it down."

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[mark francis]

I observe that 13 years have passed since this guy claimed that Alan Greenspan destroyed the United States.
However, I live in the United States in 2024 and I was also here in 2011, and I observe that this country has not actually been destroyed.

Is Janet Yellen a better Fed Chair than Greenspan? YES! Undeniably.

Foolish fiscal policies continue to degrade America and destruction is the inevitable end of such degradation progression. The Russian economy collapsed more than 30 years ago due to similar foolish fiscal policies being followed in the US by bad leaders.

 

[Gabriel_Bell]

What stupidity! s the US destroyed? No! So Alan Greenspan dd not destroy it.

The Russian economy went to hell because of the oligarchs taking over. There is no similarity. Yellen managed to lower inflation with no recession, she is a genius.

 

[mark francis]

What stupidity! s the US destroyed? No! So Alan Greenspan dd not destroy it.

The Russian economy went to hell because of the oligarchs taking over. There is no similarity. Yellen managed to lower inflation with no recession, she is a genius.

You fail to mention that the US credit rating has been downgraded under Biden for only the 2nd time in US history, the first downgrade under Obama and the majority Democrat House and Senate.

 

[Boris Norris]

Alan Greenspan is just a puppet who carried out his master's order. The real mastermind is the Feds. (FBI) They hold large quantity of houses in my case and need a low interest rate to maintain the value of this property. So though Greenspan is not on the seat, Bernanky or his follower will still keep the interest rate low. That's why you saw they keep the QE programme on and continue to print money.

739. The third housing bubble (10/1/2012)

This was what happened in 1990s. The Feds started to buy in the real estate property from 1990 when they drove down the housing price. In 1997, when they found I trying to buy a house, the Feds passed the “Taxpayer Relief Act” to check other buyers from competition. Then they pushed up the housing market with the “dot com” babble. Why? Because the area where I live is the Silicone Valley where the high tech. companies gather in and where the Feds hold a lot of property they bought in my case. The tactic was to encourage the establishment of new company. The high salary employee would boost the property price.

The “dot com” bubble exploded in 2000. The Feds might have made good profit in property market in elsewhere but the San Francisco Bay Area where they invested heavily in my case. How to release their wealth? Then came the second bubble.

In April 2001, Pentagon created EP-3 spy plane collision incident in South China Sea. In secret deal with China to release the spy plane crew, the Feds bribed China to frame a drug case in US. As a payback to Pentagon, the Feds helped Pentagon prepared 911 terror case. Silverstein leased WTC at that month. 911 also gave the Feds the Patriot Act they have longed for. (See: “695. The collusion of D.O.D. and D.O.J. (11/28/2011)”)

With Patriot Act and a framed drug case in hand, the Feds now was sure Kat Sung would be eliminated. What needed was a booming housing market. How to get it? By manipulate the Federal Reserve.

http://graphics8.nytimes.com/images/2008/12/16/business/17fed.graph.190.gif

You can see how dramatically the interest rate dropped to the bottom in 2001 that created a housing babble US ever had which finally caused financial collapsing in 2008.

However, the property the Feds hold in Kat Sung’s case is still there, how to deliver the hot potato into other people’s hands? It’s still the mission of Federal Reserve.



When Federal Reserve exhausted their interest rate tool, to help the Feds to break away from their straits, Federal Reserve will turn papers into money by printing 40 billion dollars each month – all of them will poured into the real estate market in order to create a third housing babble. This time, the bubble will come with severe inflation, I foresee.

How's that theory holding up now?