"Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this," Mr Greenspan said. "It's far less damaging to the economy to create a short-term fiscal problem, which we would, than to try to fix the prices of homes or interest rates. If you do that, it'll drag this process out indefinitely."
Then in this same statement he says the following:
He said he was "most concerned" about the risk of inflation moving up, particularly over the medium term, and said it was "critically important that the Fed is allowed politically to do what it has to do" to keep inflation down.
Is it just me or are those two comments completely contradictory? So we should print some more money up to help homeowners and at the same time fight inflation? And on top of all that, its really Greenspan that started this mess. So Greenspan, what happens when the money we hand out to these people is worth half its value in 6 months?
This type of logic, combined with how linked the market has become to these Fed decisions should really be a wake up call. Sadly I don't think we'll get that until we are at a point where the damage is irreversible. Sounds kind of familiar doesn't it? Oh wait, the same thing is happening with our environment...
On another note, check out Tea Party 2007 today!