From the Greenspan Archive: Don't let the masses catch on to this housing bubble thing
pic credit: Internet weekly
You can't go wrong with Greenspan classics for a slow news week.
As top Federal Reserve officials debated whether there was a housing bubble and what to do about it, then-Chairman Alan Greenspan argued that dissent should be kept secret so that the Fed wouldn't lose control of the debate to people less well-informed than themselves.
"We run the risk, by laying out the pros and cons of a particular argument, of inducing people to join in on the debate, and in this regard it is possible to lose control of a process that only we fully understand," Greenspan said, according to the transcripts of a March 2004 meeting.
At the same meeting, a Federal Reserve bank president from Atlanta, Jack Guynn, warned that "a number of folks are expressing growing concern about potential overbuilding and worrisome speculation in the real estate markets, especially in Florida. Entire condo projects and upscale residential lots are being pre-sold before any construction, with buyers freely admitting that they have no intention of occupying the units or building on the land but rather are counting on 'flipping' the properties--selling them quickly at higher prices."
See the sheep didn't understand at the time that that was totally the plan, little Greenspanstintstilskin didn't even realize just how good the plan was. To them, that is. Obviously it hasn't worked out in the long run but that's because the world they know functions along the stable linear lines of books they've read or papers they've written (sometimes for pay) and not like it actually works out. Don't tell them that, they'll get pissed off that you had the audacity to imply you - a commoner - know better.
Shhhh. Way to keep that under wraps, AG.