The committee examining the causes of the financial crisis heard a strong defense of the Federal Reserve from its former chairman on Wednesday as the panel began three days of hearings 0n the failure to rein in Citigroup, Fannie Mae and the subprime mortgage market.
In his testimony, an unflinching Alan Greenspan, the former fed chief, fended off a barrage of questions about the Fed’s failure to crack down on subprime mortgages and other abusive lending practices during his lengthy tenure.
He pointed out that the Fed had warned about subprime lending and low-down-payment mortgages in 1999, and again in 2001. And he argued that if the Fed had tried to damp the housing market amid a “fairly broad consensus” about encouraging homeownership, “the Congress would have clamped down on us.”
He added: “There is a lot of amnesia that’s emerging, apparently.”
I have been saying this from the beginning: this sub-prime meltdown was caused by the government pushing the notion that everyone is entitled to own a home. It started with the progressive Clinton administration and continued in the progressive bush administration. Homeowner ship is not a right, health care is not a right and rights come from our creator not the government; read the Declaration of Independence.
Thank GOD for the Tea Party Movement! Finally “we the people” are waking up! Come on folks jump on board! The Constitution is The Solution!