Greenspan: Market Turmoil Is Not My Fault (NY Post)

September 14, 2007 — Alan Greenspan says don’t blame him for the latest market turmoil.

The former Federal Reserve chairman said critics who have argued recently that he helped bring on the crisis in the market for risky home loans by cutting interest rates for three straight years “are mistaken.

“It was our job to unfreeze the American banking system if we wanted the economy to function,” Greenspan told CBS’ “60 Minutes” during an interview to be broadcast on Sunday.

“This required that we keep rates modestly low.”

Greenspan said he didn’t recognize until very late in 2005 that the dubious lending practices – which gave homebuyers loans with low adjustable rates that could jump to precipitous levels – were serious enough to damage the economy.

“While I was aware a lot of these practices were going on, I had no notion of how significant they had become until very late,” he said.

Compare with this from 2/23/04: Greenspan says ARMs might be better deal (USA Today)

Federal Reserve Chairman Alan Greenspan said Monday that Americans’ preference for long-term, fixed-rate mortgages means many are paying more than necessary for their homes and suggested consumers would benefit if lenders offered more alternatives.

In a standing-room-only speech to the Credit Union National Association meeting here, Greenspan also said U.S. household finances appeared generally sound, despite rising debt levels and bankruptcy filings. Low interest rates and surging home prices have given consumers flexibility to manage debt, he said.

“Overall, the household sector seems to be in good shape,” Greenspan said.

What a fucking hack.