Mad Alan Greenspan with More Advice
Greenspan: US Needs Home Inventories Cut
The Associated Press Tuesday, November 6, 2007; 8:15 AM
TOKYO -- Former U.S. Federal Reserve Chairman Alan Greenspan said Tuesday that cutting excess home inventories in the United States is key to stabilize the financial system at home and the rest of the world.
"The critical issue on the whole subprime, and by extension, the international financial system rests very narrowly on getting rid of probably 200,000-300,000 excess units in inventory," Greenspan told a business leaders' forum video conference in Tokyo from Washington.
The former Fed chairman urged central banks to avoid suppressing asset bubbles, which is "exceptionally difficult" to do.
________________________________________________________________ Alan, whose advice has been uniformly bad during his last term as Fed Chairman, wants no suppression of bubbles on the one hand and (by inference) a managed way to get rid of 'units'--houses, in less contrived jar…