Accounting & Investing Info for San Antonio A & M
While I usually don’t agree with Paul Krugman, this article succintly sums up the mortgage problem. He notes the latest idea promoted by Tsy Sec Paulson is more of the same, buy more mortgages in SIV Special Investment Vehicles. Will this work, Greenspan who has yet to admit the error of lowering rates too far in the first place, does not think so.
Good summary as Countrywide financial CFC continues to fall in price.
This article was very interesting. I am reading Greenspan’s book now and it will be interesting to see his view of the situation. I hope Kruger is not blaming Greenspan for the situation. There is plenty of blame to go around. I mostly blame the unchecked opportunistic greed of individuals within the market. Now it seems we all must pay.
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I would say the prevailing view is that Greenspan eased way too much for too long. The result was an overheated housing market taht led to many excesses, ala dot.com, and now the inevitable crash and correction. HOV is down 85% from its high of 75 in less than two years. Now Bernake appears to have knee jerked a rate decrease, the result is a lower dollar, higher oil and gold, and jittery markets.
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Professor Elam 
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