Re: Greenspan on 60 Minutes - I call BS
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He doesnt say he didnt recognize that it COULD happen. He says he didnt realize the EXTENT to which it happened. It isn't suprising that he wasnt focused on it then, since it was in only in late 2005 and early 2006 that subprime originations took off, and at the time he was busy handing off the job to BB.
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That's quite the clever dodge. He had to know the amount of cheap money sloshing around, he was head of the organization that was printing, for crying out loud. He has to understand that the only way to make money with money is to lend it, so it stands to reason that the banks are going to push this cheap money to lenders in any way they can.
Maybe his models were off. Perhaps he should talk to the global warming folks on how to make better models (sic).
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