Fed Officials Led By Greenspan Saw Housing Bubble in 2005, Didn't Alter Policy - Newly Released FOMC Minutes
Scroll down for very special Greenspan video...
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Federal Reserve staff and policy makers identified a housing bubble in 2005, and failed to alter a predictable path of interest-rate increases to slow down the expansion of mortgage credit, transcripts from Open Market Committee meetings that year show.
- The “measured” pace language helped fuel the housing boom by keeping longer-term interest rates low and was inappropriate at the time given the uncertainties about both inflation and asset prices, said Marvin Goodfriend, a professor at Carnegie Mellon University in Pittsburgh.
- “It was a major mistake by Greenspan,” said Goodfriend, who attended some of the 2005 meetings as a policy adviser to the Richmond Fed. “It gave markets a sense that the Fed was on top of everything to a degree that wasn’t the case. It gave the impression that this was a mechanical adjustment to normality. The market was overconfident.”
New York Fed researcher Richard Peach dismissed press reports describing a bubble in housing markets.
- “Hardly a day goes by without another anecdote-laden article in the press claiming that the U.S. is experiencing a housing bubble that will soon burst, with disastrous consequences for the economy,” Peach told the committee.
Greenspan followed the presentation with questions about the effect of underlying land prices in housing indexes, and the quality of data on whether home purchases were for investment or residences.
- “There was a fundamental failure of economic analysis to understand what was going on in the potential for house prices to stop rising,” said William Poole, the former St. Louis Fed president who attended the meetings in 2005. “The high degree of assurance that we all felt that house prices could not decline on a national average basis in a fundamental way -- that was a significant mistake.”
Continue reading at Bloomberg...
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Greenspan admits the Fed is above the law...
Greenspan spells it out...
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Video - PBS Frontline The Warning
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Of course Bernanke never saw a housing bubble...
Video - Bernanke's failed CNBC predictions - classic...
He was too busy chasing Keynes ghost all over Princeton...
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Jul 3, 2011 at 11:32 AM
Reader Comments (25)
http://dailybail.com/home/flip-flop-fed-chairman-greenspan-the-bank-fraud-denier-flash.html
http://dailybail.com/home/pbs-frontline-the-warning-how-greenspan-summers-rubin-conspi.html
http://www.washingtonsblog.com/2011/01/settling-prosecutions-for-pennies-on.html
http://www.washingtonsblog.com/2011/01/government-says-no-to-helping-states.html
Same for Benanke.
They aren't dense, just criminal.
Instead of doing anything to demand justice and enforcement of the law, the American People just keep dog-paddling around in the toilet.
They better have some Scuba gear cause the Federal Reserve is pushing hard on the flush handle.
AUDIT THE FED!
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do you really need a response...
Well, they didn't really clear him; they just 'declined to prosecute'.
Why? The Bush administration's job was done: It has been universally accepted that the political assassination of Elliot Spitzer was engineered by the Bush administration because of his public accusations against the United States Federal Reserve Bank (Lincoln, Kennedy, Iraq, Iran, Pakistan et. al.) and the top Wall Street bankers and lending institutions of a predatory lending practice called 'sub-prime'.
Spritzer and most of the other fifty state governors were watching their constituents being robbed by Wall Street through this lending practice, losing their livelihoods, losing their houses, losing their pensions, losing their lifetime accumulation of wealth.
Once this practice was integrated into the banking system, by 2005 it was - many believe deliberately - allowed to escalate into trillions of dollars of international Triple-A-Securities loans backed by massively (unknown to global purchasers) defaulting loans and sold to the European and other global bankers who were reported to be 'furious' with Wall Street and at the time, Europe, China and a host of others threatened to pull out of the dollar until Bernanke's Fed payed some three trillion dollars to buy back all that toxic garbage at American taxpayers' expense in 2010.
AS THE DEFAULT loan payments stopped coming in the fuel for the debt-based trading ran out and the third biggest financial bubble ever created began to deflate.
The biggest is the coming-soon-to-a-neighborhood-near-you Credit Default Swap bubble and the second biggest, the Commercial Property Default bubble is Afront runner.
(Greed on the part of low-level thieves unaware of the bigger picture tripped them up with the foreclosure mess, but watch a little retroactive legislation clean that up).
One man put his finger in the dyke. But instead of helping him stem the tide, they broke his finger.
'They' took him out with A short, sharp, vicious and unprecedented public humiliation: Formally charging him with associating with prostitutes 'across state lines'.
How often are prostitutes' clients 'busted'?
All of you men can answer that one.
We all know how often public outrage has insisted on, demanded! Lists – names, addresses, pictures, and videos - of the men who visit 'the working girls'.
Successfully, as far as I know, only once, and in New York State.
And only one name on the list: Elliot Spitzer – that was the power of the Bush administration.
But then, Spitzer was trying to save the world from Capitalism gone awry, a world that includes us here, now, with our falling housing prices – and that takes either a Superman or a brave little Dutch Boy.
He actually tried!
Why he's doing what he's doing on a talk show today is quite beyond me!
He stood up in an apotheosis of 'his fifteen minutes', thinking that as governor of one of the most powerful states in America, he could rally the nation against the banksters who were running it.
He brought out his guns and fired them off on MSNBC and Fox News, all the wire services, at the whole world that did not listen:
He fired the first (and only) volley of his charge inside the prestigious American National Press Club thinking that this shot would be so loud it would be heard around the world, and that the mediAwould follow his leading charge against the crime of the millennium, Grand Theft Planet ®.
The price of your house today is an echo of that shot. (From 'Grand Theft, Planet' by Tom Dennen)
In regards to your comment:
Instead of doing anything to demand justice and enforcement of the law, the American People just keep dog-paddling around in the toilet.
They better have some Scuba gear cause the Federal Reserve is pushing hard on the flush handle.
This is such a heavy and depressing topic and just when I think I can't listen anymore about the corruption in our country, I read an inspired comment like yours. Thank you for the belly laugh. A little levity goes a long way. Well done.
http://letthemfail.us/archives/8520
Have a Fit with Fitts:
http://quantumpranx.wordpress.com/2011/02/08/catherine-austin-fitts-we-are-victims-of-a-financial-coup-detat/
And of course at letthemfail:
http://letthemfail.us/archives/8550
A private organization that is above the law of the land!
I believe anybody involved in that organization who operates on that premise is committing treason.
Lets see, treason during three wars going on. Where in the hell is Homeland Security when we need them.
Actually I'm surprised that the hundreds of thousands of people who lost everything because of FED policy, cover-ups, and conspiracy haven't rioted and strung up every FED official they can catch along with the blood sucking parasites on Wall Street and a bunch of crooked congress and administration officials.
I guess the American People are turning into a herd of penned up sheep!
Hard to believe they are allowing 235 years of hard work and personal sacrifice by millions of Americans to be destroyed by a minority of elite parasites who value wealth and power above all else. Barely a whimper of protest except from a few sites like The Daily Bail and others who are trying to stem the tide of apathy and inaction that is drowning the American People.
WHAT THE HELL HAPPENED TO AMERICA!!!!!!
http://www.oregonlive.com/finance/index.ssf/2011/07/what_oregons_foreclosure_mess_means_and_when_itll.html
That's a crazy story. Can you flesh it out a bit and give us a little more? For instance, where was this conference, and how is it the attendees were so knowledgeable?
No rush. Just curious.
http://www.zerohedge.com/article/happy-debt-independence-day-2011
"You have no choice! You have OWNERS! They OWN YOU. They own everything. They own all the important land. They own and control the corporations. They’ve long since bought, and paid for the Senate, the Congress, the state houses, the city halls, they got the judges in their back pockets and they own all the big media companies, so they control just about all of the news and information you get to hear. They got you by the balls."
Independence? MY ASS!! @&!^*+$%:{<?*
Banks and their representatives guilty of felony burglary and grand theft, yet immune to criminal charges for acts that would put an American Citizen in prison for years.
Police ignoring the U.S. Constitution and the Bill of Rights and judges are agreeing with them.
A Supreme Court that puts big business ahead of the people.
A Justice Department that seems blind to the fact that the biggest theft in history has been committed against the American People and the criminals directing the robbery walked away rich laughing their butts off with no charges, when they should be sitting in prison with their wealth confiscated.
A private banking cartel that tells the Congress and the American People, we control monetary policy, how and what we do is secret and none of your business, if you don't leave us alone the sky will fall and the world will end.
With all these serious issues and many more ongoing on the anniversary of our 235 years of Independence, the biggest story in the American MSM for weeks now, is about the murder of a little girl in Florida.
Certainly a tragedy for the family involved.
But, the issues I refer to above are having tragic consequences for millions of Americans all across the country. The MSM keeps news on those issues in a closet somewhere, brings them out for a peek once in a while to see if they're still there and quickly shoves them back in the closet before anybody can get a good look at them.
I have to wonder if most of the American People today deserve the country many of our predecessors sacrificed everything including their lives for?
I think not!
The parasites are being allowed to steal from us and our children, our wealth, our futures, and our independence and there aren't enough of us raising hell about it to stop them.
It would appear that greed, corruption, decadence, and apathy are becoming the American traditions of the 21st. century.
http://www.nytimes.com/2011/07/03/business/03loans.html?_r=2&src=me&ref=general
http://www.facebook.com/notes/libertarian-party-of-florida/libertarians-call-on-florida-sheriffs-to-arrest-tsa-agents/10150236354954690
I'm too busy for a holiday.