As the housing bubble bursts: another Greenspan legacy

The Dow crashed below 12,000, due in large part to worries about subprime mortgages.

The problem soured even good news from GM, as its residential mortgage arm reported problems with subprime loans.

So, Tommy Tompkins, Steve Topletz I really feel your pain now.

D.R. Horton probably won’t be building a lot of new houses anywhere, not just Lancaster, Texas, for the rest of 2007.

Joking aside about Steve Topletz’s pain, or Tommy Tompkins’, this could turn out to be the top economic story of 2007. Former Federal Reserve chair (Saint) Alan Greenspan either blithely ignored the housing bubble or else willfully encouraged it to get us out of one recession, only to possibly plunge us into another that may be worse. (Of course, this is the same Saint Alan that allowed the dot.com bubble to build up in the first place in the late 1990s.)