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I realize some in the media have given at least some blame to Alan Greenspan for the financial meltdown. However, has the media given the American people the full story of how much Alan Greenspan may have had to do with the financial meltdown? It seems to me that the media has mainly faulted Greenspan for not realizing their was a housing bubble and not doing anything to ease the bubble. They seem to have not discussed Greenspan encouraging some of the actions that took place in the years before the meltdown.
I have been the book The Two Trillion Dollar Meltdown , by Charles Morris. In chapter 4 of that book, which is entitled A Wall of Money, Morris discusses Greenspan's actions in the leadup to the financial meltdown. One specific action Morris points out is that Greenspan encouraged people to take out Adjustable Rate Mortgages (ARMs) instead of going for long term-fixed rate mortgages. Morris wrote,
"As always, Greenspan cheered it on. In 2004, when famillies had a historic chance to lock in long-term fixed-rate mortgages at only 5.5 percent, Greenspan said they were losing "tens of thousands of dollars" by not grabbing one-year ARMs, then at teaser rates of only 3.25 percent."
So, has the media discussed any of this? I am not asking this because I do not watch the news; I do. I am wondering if anyone has seen something I have not seen.
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