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Mortgage crisis: We had it coming

Abstract:
Some years ago, my son was thinking of buying a house in the San Fernando Valley and asked my advice about getting an adjustable rate mortgage. I told him to stick to the old fixed rate. Happily, he did.

Recently, Alan Greenspan was asked about the adjustable rate mortgage - and sub-prime-driven housing bubble that has brought capitalism's house of cards crashing down all over the globe....

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Amortization

posted 2/02/09 @ 10:38 AM EST

You don't know how rare these happy cases are considering that the mortgage crisis reached all of us. It's refreshing to see some people are not complaining, it makes you think that things are not that bad after all.

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Andrew

posted 2/05/09 @ 6:15 PM EST

Zaller:

Stop writing for the Triangle. You are an embarrasment to humanity, and your socialist, wrong viewpoints are what is wrong with higher education these days. Go back to your classes and do some real good.

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Nick

posted 2/06/09 @ 9:28 AM EST

It's a little bit of a stretch to say that Greenspan caused the housing bubble. Policy changes by the SEC which changed the amount of leverage on publicaly traded companies from 12-1 to 33-1, (that means if your assets drop 3% you essentially turn your company upside down), probably had a greater part. This is evident in the enourmous amount of private label securities hitting the market...most notably in the subprime space.

http://www.nytimes.com/2008/10/03/business/03sec.html?_r=1

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