Is Alan Greenspan Worried About U.S. Socialism?

About the housing bubble: “The Fed was “a prime culprit in creating the crisis,” wrote Steve Forbes, publisher of Forbes magazine, in a just-published commentary. But other economists, including critics of Mr. Greenspan, say the housing bubble resulted from much broader forces, including a dramatic drop of interest rates around the world and an explosion of mortgages that required no money down, no income verification and deceptively low initial teaser rates.

Mr. Greenspan generically defends the Fed’s action, writing: “I believed then, as now, that the benefits of broadened home ownership are worth the risk. Protection of property rights, so critical to a market economy, requires a critical mass of owners to sustain political support.””

Um, since when in the U.S. have we not had a critical mass of people, homeowners or not, politically supporting private property rights? I mean, there are occasional troubles over eminent domain and the usual differing views over tax rates, but I don’t see any Americans rushing to support wholesale government taking of private property. Worries about maintaining a critical mass? Is there some underground secret socialist uprising in the U.S. that Mr. Greenspan has on his radar that we’re not aware of?  News to me–what a weird justification of housing-related property.
Fed’s Ex-Chief Attacks Bush on Fiscal Role


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