Economics Greenspan: Government should have intervened in housing & burned homes to the ground

Taco John · 10-22-2011, 01:06 PM

Alan Greenspan, the economic intellectual titan of our time, the man who was the head czar of our economy for 20 years says that the government should have used the taxpayer dollar to buy up foreclosed houses and burn them to the ground in order to preserve home values.

I don't know how anyone can watch this and not have their jaw drop in their lap and wonder just where we've gotten ourselves to with this bankrupt economic system.

http://video.cnbc.com/gallery/?video=3000050025

There is an alternative to the debt based Keynesian economy, and it's not a "gold standard." It's called competing currencies. If you favor a mixed market but don't believe there should be a mix of currencies, then all you really believe in is centralized government, not an actual "mixed market."

Competing currencies are the only way out of this mess.

KILLER_CLOWN · 10-22-2011, 01:25 PM

That would have fixed it, really? WTF?

CoMoChief · 10-22-2011, 01:26 PM

Greenspan can go **** himself. I'm not wanting to raise my blood pressure at all today therefore I'm not clicking on that link.

BucEyedPea · 10-22-2011, 01:54 PM

To think this man was from the Austrian School or associated with them at one time. No wonder he's considered a sell-out by them.

SNR · 10-22-2011, 04:53 PM

I remember stories of farmers during the depression slaughtering livestock and burning crops for no reason other than to drive up the prices and set the food market back on the right track.

That's pretty much what he's talking about. Except it didn't work then, either.

Taco John · 10-22-2011, 10:59 PM

For people who don't quite understand the angle he's getting at...

He is actually right that burning down the surplus would protect the housing prcing market for existing mortgage holders, and the fact that he's right only serves to demonstrate how evil and corrupt the Keynesian, debt-based economic system is.

We all know about the bubble by now - interest rates were held artificially low, and houses were over built, and over leveraged etc., and eventually people started losing their homes because they were over lent. Right now, the banks are holding a TON of surplus inventory. You probably see evidence of this in your own neighborhood (I have a house just across the street from me that has been vacant since Summer 2007). Eventually - probably even before this election cycle is done, the banks are going to have to release these houses on the market and they're going to sell for absolutely killer rates. People are going to be shocked at how low these houses start selling for. And the existing house prices will plummet because of how low the surplus houses sell for. Why would someone buy your home at $240k when they can buy a better one for $180k? This is going to absolutely RAPE the middle class. If you are caught with a mortgage when this happens, you'll likely lose somewhere between $20k-$40k in equity. Many people will be underwater and stuck with loans that put them upside down. This, of course, causes political problems. When the middle class who own their homes see this happening to them, things are going to get ugly.

Alan Greenspan's solution to burn the surplus homes to the ground would prevent the current homes to lose their value because there would no longer be a huge surplus and the supply and demand would be a lot more in tune with eachother. But this, of course, is politically infeasible.

This housing situation is a real mess.

BigChiefFan · 10-22-2011, 11:14 PM

If they backed the paper with something tangiable, it wouldn't be a problem in the first place. The money they create is way for them to take real wealth and manipulate the markets for their own personal gain. Paper backed by a promise from crooks.

BucEyedPea · 10-22-2011, 11:20 PM

I hate to tell y'all it's going to get worse if the crisis in Europe is not resolved. That alone will take Obama down because it's connected to us.
If no solution, and it may take a miracle, it may hit as early as next week and it will make 2008 look like a walk in the park. Paul said to watch for another crisis around 2012...or 4 years since the last one.

BigChiefFan · 10-22-2011, 11:25 PM

Quote:

Originally Posted by BucEyedPea

I hate to tell y'all it's going to get worse if the crisis in Europe is not resolved. That alone will take Obama down because it's connected to us.
If no solution, and it may take a miracle, it may hit as early as next week and it will make 2008 look like a walk in the park. Paul said to watch for another crisis around 2012...or 4 years since the last one.

http://www.youtube.com/watch?v=8mPZl...eature=related

**banyon** · 10-23-2011, 08:21 AM

This is a failure of modern economics in general. Though it includes Keynesian analysis, it also includes any systems which view our societal value and collective worth in terms of raw "GDP" styled numbers where destruction of resources is considered an asset to the economy.

Unless we can distinguish activities which add to our well being from those that actually detract from or destroy well being, then idiotic solutions like the one offered by Greenspan here will continue to be proposed by the mainstream economists.

And though I agree our "debt-based" money system is a problem, neither that nor Keynes (indeed Greenspan is supposed to be an Austrian) led to the particular absurdity uttered in the video.

Comrade Crapski · 09-20-2012, 02:22 AM

Property prices in the south of the U.S. are very inexpensive compared to property prices around the world. The tragedy is that the people that were evicted from these homes have no access to credit. They have no money. They can’t buy them. So, with easy money by the Fed well-to-do people can buy these properties and then rent them out to the people that were kicked out of these homes. What a great achievement of the Fed. First they create the property bubble and destroy the wealth of poor people, then the poor people have to rent and the rents have been up over the last 12 months. What a great achievement. Thank you, Mr. Bernanke.” -Marc Faber

Read more: http://www.businessinsider.com/marc-...#ixzz26zoJa7QD

LiveSteam · 09-20-2012, 06:16 AM

Quote:

Originally Posted by BucEyedPea

I hate to tell y'all it's going to get worse if the crisis in Europe is not resolved. That alone will take Obama down because it's connected to us.
If no solution, and it may take a miracle, it may hit as early as next week and it will make 2008 look like a walk in the park. Paul said to watch for another crisis around 2012...or 4Paul said
years since the last one.

I checked you out on Pats Planet,Miss Brady Girl & this is what I found.

Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said

jjjayb · 09-20-2012, 06:29 AM

Quote:

Originally Posted by LiveSteam

I checked you out on Pats Planet,Miss Brady Girl & this is what I found.

Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said
Paul said

As opposed to
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said

LiveSteam · 09-20-2012, 06:42 AM

Quote:

Originally Posted by jjjayb

As opposed to
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said
Obama said

That would be a nice change for her.

Amnorix · 09-20-2012, 06:47 AM

Quote:

Originally Posted by BucEyedPea

I hate to tell y'all it's going to get worse if the crisis in Europe is not resolved. That alone will take Obama down because it's connected to us.
If no solution, and it may take a miracle, it may hit as early as next week and it will make 2008 look like a walk in the park. Paul said to watch for another crisis around 2012...or 4 years since the last one.

How has this prediction worked out so far?

10-22-2011, 01:06 PM
Taco John 12on Paul Join Date: Jun 2001 Casino cash: $10084552	Greenspan: Government should have intervened in housing & burned homes to the ground Alan Greenspan, the economic intellectual titan of our time, the man who was the head czar of our economy for 20 years says that the government should have used the taxpayer dollar to buy up foreclosed houses and burn them to the ground in order to preserve home values. I don't know how anyone can watch this and not have their jaw drop in their lap and wonder just where we've gotten ourselves to with this bankrupt economic system. http://video.cnbc.com/gallery/?video=3000050025 There is an alternative to the debt based Keynesian economy, and it's not a "gold standard." It's called competing currencies. If you favor a mixed market but don't believe there should be a mix of currencies, then all you really believe in is centralized government, not an actual "mixed market." Competing currencies are the only way out of this mess.
Posts: 49,361

10-22-2011, 01:25 PM	#2
KILLER_CLOWN Be HEALED!!!!!!! Join Date: Feb 2002 Location: Fascist State Casino cash: $11109249	That would have fixed it, really? WTF? __________________ "Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father ... And then will I profess unto them, I never knew you: depart from me, ye that work iniquity." "If the people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny." - Thomas Jefferson
Posts: 19,754

10-22-2011, 01:26 PM	#3
CoMoChief The Revolution Has Begun Join Date: Mar 2005 Location: KCMO Casino cash: $123528	Greenspan can go **** himself. I'm not wanting to raise my blood pressure at all today therefore I'm not clicking on that link.
Posts: 28,324

10-22-2011, 01:54 PM	#4
BucEyedPea Frazod Loves Hammy Join Date: Apr 2006 Location: None of your business Casino cash: $49098	To think this man was from the Austrian School or associated with them at one time. No wonder he's considered a sell-out by them. __________________ "In government, the scum rises to the top."~ Hayek
Posts: 46,600

10-22-2011, 04:53 PM	#5
SNR You're all I have left, Copper Join Date: Apr 2002 Location: Where the hell is SNR Casino cash: $4528087	I remember stories of farmers during the depression slaughtering livestock and burning crops for no reason other than to drive up the prices and set the food market back on the right track. That's pretty much what he's talking about. Except it didn't work then, either.
Posts: 46,999

10-22-2011, 10:59 PM	#6
Taco John 12on Paul Join Date: Jun 2001 Casino cash: $10084552	For people who don't quite understand the angle he's getting at... He is actually right that burning down the surplus would protect the housing prcing market for existing mortgage holders, and the fact that he's right only serves to demonstrate how evil and corrupt the Keynesian, debt-based economic system is. We all know about the bubble by now - interest rates were held artificially low, and houses were over built, and over leveraged etc., and eventually people started losing their homes because they were over lent. Right now, the banks are holding a TON of surplus inventory. You probably see evidence of this in your own neighborhood (I have a house just across the street from me that has been vacant since Summer 2007). Eventually - probably even before this election cycle is done, the banks are going to have to release these houses on the market and they're going to sell for absolutely killer rates. People are going to be shocked at how low these houses start selling for. And the existing house prices will plummet because of how low the surplus houses sell for. Why would someone buy your home at $240k when they can buy a better one for $180k? This is going to absolutely RAPE the middle class. If you are caught with a mortgage when this happens, you'll likely lose somewhere between $20k-$40k in equity. Many people will be underwater and stuck with loans that put them upside down. This, of course, causes political problems. When the middle class who own their homes see this happening to them, things are going to get ugly. Alan Greenspan's solution to burn the surplus homes to the ground would prevent the current homes to lose their value because there would no longer be a huge surplus and the supply and demand would be a lot more in tune with eachother. But this, of course, is politically infeasible. This housing situation is a real mess. __________________ Ehyeh asher ehyeh.
Posts: 49,361

10-22-2011, 11:14 PM	#7
BigChiefFan MVP Join Date: Feb 2001 Location: In the Top 10 Casino cash: $107112	If they backed the paper with something tangiable, it wouldn't be a problem in the first place. The money they create is way for them to take real wealth and manipulate the markets for their own personal gain. Paper backed by a promise from crooks. __________________ A 35 year drought can make you thirsty.
Posts: 14,219

10-22-2011, 11:20 PM	#8
BucEyedPea Frazod Loves Hammy Join Date: Apr 2006 Location: None of your business Casino cash: $49098	I hate to tell y'all it's going to get worse if the crisis in Europe is not resolved. That alone will take Obama down because it's connected to us. If no solution, and it may take a miracle, it may hit as early as next week and it will make 2008 look like a walk in the park. Paul said to watch for another crisis around 2012...or 4 years since the last one. __________________ "In government, the scum rises to the top."~ Hayek
Posts: 46,600

10-23-2011, 08:21 AM	#10
banyon Supporter Join Date: Aug 2005 Location: Dodge City, Kansas Casino cash: $76625	This is a failure of modern economics in general. Though it includes Keynesian analysis, it also includes any systems which view our societal value and collective worth in terms of raw "GDP" styled numbers where destruction of resources is considered an asset to the economy. Unless we can distinguish activities which add to our well being from those that actually detract from or destroy well being, then idiotic solutions like the one offered by Greenspan here will continue to be proposed by the mainstream economists. And though I agree our "debt-based" money system is a problem, neither that nor Keynes (indeed Greenspan is supposed to be an Austrian) led to the particular absurdity uttered in the video. __________________
Posts: 32,045

09-20-2012, 02:22 AM	#11
Comrade Crapski Veteran Join Date: Mar 2012 Casino cash: $19897	Property prices in the south of the U.S. are very inexpensive compared to property prices around the world. The tragedy is that the people that were evicted from these homes have no access to credit. They have no money. They can’t buy them. So, with easy money by the Fed well-to-do people can buy these properties and then rent them out to the people that were kicked out of these homes. What a great achievement of the Fed. First they create the property bubble and destroy the wealth of poor people, then the poor people have to rent and the rents have been up over the last 12 months. What a great achievement. Thank you, Mr. Bernanke.” -Marc Faber Read more: http://www.businessinsider.com/marc-...#ixzz26zoJa7QD __________________ I'm feeling good from my head to my shoes! Know where I'm going and I know what to do! Doo doo doo doo doo! I got a new attitude! http://www.youtube.com/watch?v=QWfZ5SZZ4xE
Posts: 2,735

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