Greenspan sneezes...

We've said it here before. The next great business sector 'scandal'...ala Enron, The Savings and Loan Crisis, LTCM is going to come about when interest rates keep going up and the housing bubble bursts. Now we've got Fed Chairman Alan Greenspan agreeing with us in Greenspan-ese


Greenspan was quoted as saying, "History has not dealt kindly with the aftermath of protracted periods of low-risk premiums" TRANSLATION: When interest rates rise, and they will, it's going to be armeggeddon for those you who bought way inflated houses with dodgy 'financial tools'...ie. interest only loans.

We here at the Naked Zoo predict hearings at all levels of gevernment as bankruptcies/foreclosures soar with the predictable legislative gnashing of teeth and beating on breast. We also predict new 'strict laws' to protect consumers from 'predatory lending practices'. Say that prhrase slowly three times as you'll hear it again and again, 'Predatory Lending Practices'. Expect to see it scrolling across the bottom of your favorite news channel.

Note to All: Remember this in light of the new Bankruptcy laws President Bush signed into law in April...the rope is already hanging over the branch, you're sitting in the saddle wondering what that tightness is around your neck...Greenspan just yelled Giddy-up...