Why should every American hang a picture of Alan Greenspan in a prominent location and toss darts at it at every opportunity? More than any other single human being or entity, some say the G-Man’s post-911 economic philosophy should shoulder the blame for the economic woes we face today.
Why are we being so harsh towards this grandfatherly figure with the enormous eyeglasses? In the late 90’s we went through the tech bubble burst which laid waste to the dot.com world. Shortly thereafter, the towers in New York came down. Mr. Greenspan’s response to these calamitous events was to flood the market with ridiculously cheap and easy credit.
The result is reflected in the insane number of financial institutions teetering on the brink of fiscal solvency from the massive surge of foreclosures and threatened foreclosures. This is the result of being prodded at sharp stick point by the government to make loans to people who had no chance of being able to pay them back.
Almost overnight, an entire industry of mortgage companies sprang into being, eager to make loans all day long to every sentient being with a pulse that walked through the door. At long last, the American Dream seemed to be coming true for everyone.
It couldn’t last.
The bill is coming due and it looks like the American taxpayer will be picking up the tab for the foolish and shortsighted decisions made by the Fed Chairman at that time. Looking for a scapegoat for our current mess? It’s not Bush, Clinton or daytime television. This one is on you, Mr. Greenspan.
