Greenspan Sees ‘Seeds of a Bottoming’ in U.S. Housing

Call me cynical but here is a warning.

This is the guy that traveled the world waxing lyrical about the benefit of making extensive use of derivatives and SIVs and even got Knighted by the Queen of England for it.

This is the same guy that, although not in his remit, exhorted the masses to move into variable rate mortgages just as rates were about to turn up in 2004.

This is the same guy that claimed that inflation has been benign throughout the 1996 – 2006 period

This is the same guy that campaigns (though in not so many words) against mark to market

But, more importantly, this is the guy that knows that the stress test is a sham. He knows that most of the big banks need recapitalization. He knows that unless recapitalization happens now that bank stocks are enjoying a rebound, it may not happen again and C, BOA, WFC and some other big banks may go under for good.

I say be careful with this guy. As far as I am concerned, I am taking the other side of this bet.

http://www.bloomberg.com/apps/news?pid=20601087&sid=af__GYb21Pz4&refer=home

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One Response to “Greenspan Sees ‘Seeds of a Bottoming’ in U.S. Housing”

  1. Woah… talk about the right hand not knowing what the left hand is doing… « Guido’s temple of the absurd Says:

    […] check this out, in particular read this paragraph I wrote not last week: “But, more importantly, this is the […]

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