Continuing to talk about how bad the economy is getting isn't going to help it but Alan Greenspan's apology might help point the blame and make us all feel better.
Alan Greenspan admitted he made mistakes in the past five years as the former federal reserve chairman. Greenspan admitted to trusting the market to hold itself and denying the need for more government involvement.
What he fails to admit is the low interest rates that helped investors more securely trust that people will pay back what they owe, which is clear now that they couldn't than and sure can't now.
Is it all Greenspan's fault?
I don't think one person can be blamed for the demise of a strong economy. Many people took part in bringing down the world's most powerful market, at least it was a couple of years ago.
The decline has been slow up until a month or two ago when markets began to drop tremendously and foreclosures shot up.
The 71% forcloseure rate that has occured in less than a year is scarey and we're just waiting around to see how much the $700 billion bailout plan will actually slow or hault that increase.
We have to blame ourselves at some point for buying homes that we couldn't afford. We have to blame the banks for selling bad investments to United States Wall Street.
We can blame Greenspan for his under estimating banks and the market since that was he main job. We can also blame him for not foreseeing what his decisions could do, since that too is the sole purpose of his job in my opinion.
The problem is going to continue. Home owners are being forced out, people are losing their jobs and these are signs of a serious depression.
Not everything is going to be made better by the bailout plan.
'Time heals all wounds', as the cliche' goes. Let's just hope time really does heal these severe economic wounds before they are opened back up again.
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