RSS

THE WEEK: How Elizabeth Warren predicted the crash of o8.

In 2004, the U.S. was blindly headed toward a devastating economic meltdown. Yet Warren knew it was coming, and gave a shockingly prescient breakdown of where America’s economic policies were taking the country in a recently surfaced interview with PBS NOW‘s David Brancaccio.

In a segment of the interview, Warren, then a Harvard Law School professor, notably called out then-Federal Reserve Chair Alan Greenspan for focusing on banks rather than everyday Americans and their debt. Warren characterized Greenspan as telling Americans to “borrow against your house … just to put groceries on the table.” But that means trusting that “nothing serious is going to go on in your family that’s going to make it hard to make those payments,” Warren continued — something that obviously isn’t guaranteed.  In this ’04 interview, @ewarren tried to warn of the coming crash.

“Alan Greenspan, our national economic leader, stood up for the last 4 years and told Americans ‘borrow against your house.’ What frightens me is millions of Americans have taken that advice”

In a second clip, the interviewer displayed the widespread attitude that led to the ’08 crash.”The houses around me are rising in price. It makes sense that I should be able to harness some of that rising real estate value”
Warren proceeds to give him a quick economics lesson.

Warren went on to discuss how mass housing foreclosures would disrupt millions of Americans’ retirement plans, which, of course, happened in 2008. Find more of the interview with Warren in this Twitter threadKathryn Krawczyk


Your Comment