Apparently there is a new definition of “recession” out there. It no longer has to do with growth or lack there of, it has to do with how people “feel”.
Alan Greenspan says we’re in a recession, so……..
Alan Greenspan also thinks that the fastest way to get to the “bottom” of the housing market is for the Federal Government to help folks out. (wouldn’t the fastest way be to stay out of the way of whatever free fall might be going on?)
Alan Greenspan also thinks that the Bush administration has “adamantly refused” to use public money to help out.
(Isn’t Bush ready/willing/able to sign the bill going through Congress right now??)
And finally, Alan Greenspan also has said he had nothing to do with the housing bubble that has led us to this ‘mortgage crisis’.
Greenspan has in recent days made a series of public statements defending his record at the Fed in light of criticism that a long period of low interest rates and a laissez-faire oversight approach led to reckless market behavior that resulted in the sharp housing correction and the ongoing credit freeze.
The Financial Times this week published an article of his entitled, “The Fed is blameless on the property bubble.”
I think I’ll stick with the real definition of recession and wait until someone with actual economic credentials tells me we’re in one.
ps – and for those of you who like to make silly decisions concerning your house, let me direct you to this article on how to pay down your mortgage quickly.
1. open up a home equity account,
2. pay a big hunk of principle with it, then
3. as you deposit your pay check into this equity account (and have household expenses less than your paycheck)
4. use your new $3500 computer program to figure out the best time to use the home equity account to make another hunk of principle payment.
Um……can’t you do that with your very own savings account and a spreadsheet?
No, no, no. Instead, we recommend that you a) risk your house and b) spend lots of money on our special software.
fyi – the author of this article is NOT recommending this plan. Just sharing it like me.
Let the mortgage crisis continue!!!
UPDATE: this post has been rewritten so you can actually understand it!