Uncle Alan says he was not responsible for the current economic mess. Gee.
I wonder who forced him to lower the interest rates to 1% for a long time which set off the housing bubble? After all, it was the very low interest rates and easy credit that caused the global money glut to go looking for better returns. How were those low interest rates linked to the current crisis?
Adam Davidson: Mike was one link in a chain that connected the global pool of money to its new favorite investment, these residential mortgages, the US housing market, and guys like Clarence Nathan. Think how attractive a mortgage loan is to that 70 trillion dollar pool of money.
Remember, they're desperate to get any kind of interest return. They want to beat that miserable 1 percent interest Greenspan is offering them.
And here are these homeowners, they're paying 5, 7, 9 percent to borrow money from some bank. So what if the global pool could get in on that action?
But it wasn't Uncle Alan cheerleading the "innovative financial packages" that would boost the selling of exotic mortgages -- that was done by his doopleganger. Really.