Greenspan: Moonbattery Set Off Financial Crisis

Yesterday long-time Chairman of the Federal Reserve Alan Greenspan was called before Congressional bureauweenies to be scapegoated for the financial crisis they caused. But he turned the tables on them, pointing out the obvious by laying

blame for the crisis on international economic forces that were pouring money into the U.S. real-estate market, as well as on domestic political pressures to boost homeownership. He singled out the congressionally chartered mortgage companies, Fannie Mae and Freddie Mac, which were major consumers of subprime mortgages.

Mr. Greenspan suggested that Fed critics have lost sight of the political atmosphere that prevailed at the time. “I mean, I sat through meeting after meeting in which the pressures on the Federal Reserve — and on, I might add, all of the other regulatory agencies — to enhance lending were remarkable.”

That is, the housing crisis that caused the world economy to tank was caused by the liberal campaign to force banks to make loans they know won’t be repaid — on a largely racial basis — so that all people can have houses whether they’re willing to work for them or not. Some of that pressure was applied by an unsavory community activist/shyster who sued banks on behalf of ACORN before becoming the most powerful moonbat in the world.

As for the idea of Congressional Dems shoving all the blame onto the Federal Reserve…

“There’s a presumption that the Federal Reserve’s an independent agency, and it is up to a point, but we are a creature of the Congress and if … we had said we’re running into a bubble and we need to retrench, the Congress would say ‘we haven’t a clue what you’re talking about’,” Greenspan said.

Actually, some in Congress did warn about the approaching iceberg. But they were shouted down by the folks who are now consolidating centralized control of the economy:

During the Greenspan hearing, the lights went out. Somebody up there has a fine sense of symbolism. Or maybe its foreshadowing — because with Dems at the helm, the worst is not behind us.

On a tip from Conan. Cross-posted at Moonbattery.

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