Dear Mr. Greenspan what about the people like myself that didnt bite on teaser rates and speculator run ups?

Question

I'm waiting for prices to soften so I can buy a house the right way.

Why is it that people in the middle, who show a little self restraint, keep getting hosed?

Where was my bailout in '95? Oh that's right that mortage was FHA insured!

I believe that was the point of the new sub prime mortage schema.
Find ways to get around mortage insurance.
Now that the banks are holding the bag they want another bailout.

S&L's, FHA, How many chances do you need?

Mr. Greenspan why don't you admit you schrewed up and didn't watch the hen house.

Answer 1

So whatdya think. Has Neil Bush been selling Mortgages?

Answer 2

It's hard to say how much of the current mess was Greenspan and how much is Bush. Obviously, this was triggered initially by dropping the Fed discount rate to 1% and leaving it there for too long. With interest rates so low, borrowing money was cheaper and demand for home loans skyrocketed, which in turn caused housing prices to skyrocket.
At that point, interest rates had no place to go but up, and they did, making the current situation easily predictable.

At this time, there is no way most people can afford houses here (San Diego), especially on a single income, even if prices come down another 20%.

Was keeping the discount rate at 1% for so long, even given the need to get the economy going after 9/11, a mistake? Oh, yes. BIG mistake. Was it Greenspan's fault? Yes, more than Bush, although I'm sure that pressure from Bush was part of the problem

Good observation, Sir.