In his desperate effort to preserve his legacy, Alan Greenspan has been saying that the only thing that he could have done to stem the housing bubble was to raise interest rates. This would have crashed both the bubble and the economy.
It would be good if reporters asked him about alternatives, like imposing the sort of regulations advocated by fellow Fed governor Ned Gramlich in 2000, and just imposed by the Fed yesterday. At the least, these regulations would have stemmed some of the abuses in the mortgage market we saw in the last three years.
I would have had Greenspan lay out the case for the existence of the bubble at his congressional testimonies and other public speaking appearances. But, if he has trouble with graphs, at the least he didn't have to deny the existence of a housing bubble, as he did repeatedly over this period.
Greenspan failed disastrously in dealing with the housing bubble and he should not be allowed to rewrite history to exonerate himself.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved