The Biggest Bubble-Makers | Jim Powell | Cato Institute: Commentary

The Biggest Bubble-Makers | Jim Powell | Cato Institute: Commentary: "On April 17, 2002, Federal Reserve chairman Alan Greenspan downplayed the idea of a housing bubble.
* On March 4, 2003, Greenspan stated that 'any analogy to stock-market pricing behavior and bubbles is a rather large stretch.'
* In spring 2004, the Federal Deposit Insurance Corporation declared: 'There is no U.S. housing bubble ... it is unlikely that home prices are poised to plunge nationwide.'
* On Oct. 19, 2004, Greenspan expressed the sunny view that the run-up of housing prices and housing debt wasn't 'overly worrisome.'
* In December 2004, the Federal Reserve Bank of New York reported: 'The most widely cited evidence of a bubble is not persuasive ... a bubble does not exist.'
* On Jan. 28, 2007, Federal Reserve chairman Ben Bernanke testified before the Senate Budget Committee about financial trends. He didn't say a word about a possible bubble. He expected that 'the budget deficit may stabilize or moderate further over the next few years.'
* In April 2007, the International Monetary Fund issued a report that said 'the overall U.S. economy is holding up well.' The IMF suggested 'the continuation of strong global growth as the most likely scenario.'"