What is Greenspan s Late Economic Boom Illusion?

In fact, it mainly refers to the bubble economy, around 2001, the Federal Reserve cut interest rates to 1% in a row to maintain the growth rate, and a large amount of surplus capital was created, which poured into the real estate market, causing the market to over-exuberate. Since 2004, the Fed has raised interest rates, and in less than two years, it has raised interest rates 17 times in a row, reaching this level by mid-2006. However, in the process of raising U.S. interest rates, the rising U.S. real estate market obviously can't stop, and he has enabled the era of low interest rates to generate speculative bubbles.

At the turn of the century, as the stock price was raised, more brokers were happy to lend money to investors to buy. As the stock price moved higher, buying continued until the bubble burst. Creating a bubble may be seen as bad luck; Making two bubbles looks like negligence.

However, this is exactly what the Fed did during Greenspan's administration. After suffering losses in **, Americans turned to buying houses. The mortgage industry uses ** bonds to ensure that loan originators do not have to worry about not being repaid; The risk is packaged for resale to someone else.

He has said many times that buying a house is a safe investment because house prices will not fall. Homeowners are able to wait until the end of any downturn. So many people think, "If the world's financial geniuses think this way, it must be true".

Even as things went into complete madness, Greenspan dismissed those who warned that a new bubble was forming, claiming that there was only a little "foam" in a few areas. Later, it wasn't until 2007, two years after Greenspan stepped down, that he admitted that "foam" was his euphemism for "bubble." As with the bubble, the fault this time was not that interest rates were set too low, but that they sat idly by and ignored the extremely flippant style of mortgage lenders.

It can be said that Greenspan caused the economic crisis, and it was he who caused the world to suffer!

Recommend the book --- Trial of Greenspan

Let's see what Greenspan himself has to say. **There is a Chinese version of Greenspan's memoirs. I think Greenspan actually predicted the financial and economic crisis, but the timing was not stated.

First, the specific time point is indeed difficult to say. Second, if he is right, his sin is even greater!

False overconsumption caused by timely subprime loans.

He is a character who is very determined, knows how to make trade-offs at critical moments, and finally achieves his life goals.

Reference: 1. He is a character who is very determined, knows how to make trade-offs at critical moments, and finally achieves his life goals.

In this article, Greenspan "released the balloon" twice: the first time, he abandoned the mathematical choice** (this is implied in the text), and the second time, he abandoned the choice of economics (which is more obvious).

2. The interlude is the fourth paragraph (seeing the balloon, his mother was very emotional......Balloons are his most intimate toys. ）

Function: On the one hand, explain the position of the balloon in his heart, implying that giving up needs to endure the pain of love; On the other hand, it paves the way for his renunciation and choice to be written below.

4. For fame, wealth, power, status and other "charming" things to know how to choose, should be given up boldly abandoned, should be grasped without hesitation to grasp, this is the correct attitude we should take when we encounter abandonment and choice.

Name: Alan G. Greenspan.

Eenspan) Year of Birth: 1926 Place of Birth: New York, USA Education: Ph.D. in Economics Position: Former Chairman of the Federal Reserve.