I've been reading about the housing bubble since 2004 on fool.com. They knew it was coming but no one knew when. Greenspan knew about it but dismissed it as mere froth 2005.
I think the reason he chose to overlook it instead of dealing with it was because he wanted US to come out of the recession that started in 2000-2001. People were afraid that like Japan, US will also face a long recession. Housing bubble delivered US out of the recession in a much shorter time.
This time however, even that hope is gone. There is no froth left anywhere in any sector. The winter is going to be long and harsh. Remember, the US "lost decade" started in 2007...
No comments:
Post a Comment