Greenspan says "not Fed's fault"
Not my fault
Greenspan, who ran the Federal Reserve forever and a day, has said that it is not the Feds fault for the current economic crisis. That, IMO, is completely inaccurate. Cheap money, created by the Feds interest rates, caused insane amounts of debt spending. The fact is, cheap money bleeds debt. When you feel you can access funds whenever you need them, you are more apt to take on debt. This is what the "world" did, thanks in great part to insanely low Fed interest rates. Whats more, in the 1980's interest rates were around 20%, that is how the US pulled out of a recession and leveled out monies overall value. But 20% in a market of foreclosure is frightening. So, be ready to be in a recession for a long, long time.
All is not lost though. Once finally corrected, odds are you'll personally have far less debt (as you'll have paid it down) and far less likely to do it again as you'll be too scared to. Much like the 1930's families that hid money in mattresses.
Greenspan, who ran the Federal Reserve forever and a day, has said that it is not the Feds fault for the current economic crisis. That, IMO, is completely inaccurate. Cheap money, created by the Feds interest rates, caused insane amounts of debt spending. The fact is, cheap money bleeds debt. When you feel you can access funds whenever you need them, you are more apt to take on debt. This is what the "world" did, thanks in great part to insanely low Fed interest rates. Whats more, in the 1980's interest rates were around 20%, that is how the US pulled out of a recession and leveled out monies overall value. But 20% in a market of foreclosure is frightening. So, be ready to be in a recession for a long, long time.
All is not lost though. Once finally corrected, odds are you'll personally have far less debt (as you'll have paid it down) and far less likely to do it again as you'll be too scared to. Much like the 1930's families that hid money in mattresses.
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