He really laid out the problem quite well, at least, the problem of the last two or three years, that there was a speculative bubble in the price of housing, that the financial institutions, the banks and investment banks and all these insurance companies and pension funds and everyone else exacerbated that problem by spreading that risk all throughout the economy.
Perhaps the turmoil of the past few weeks, by pricking a speculative bubble and making investors reassess risks, has itself sown the seeds of a recovery.
Ratings agencies, investment banks, mortgage lenders, and yield-starved hedge funds have taken some of the blame for creating the speculative bubble, and federal regulators are also taking the heat for failing to stop them.
Instead, availability of land simply fed speculative activity, which has made the popping of the bubble much more painful.
The price surge in oil (along with other commodities) since the late 1990s has the look and feel of a speculative bubble.
Like Japan in the 1980s, America in the late 1990s was given an exaggerated sense of its economic strength by a huge speculative bubble in the country's stockmarkets.
All it took was the threat of new offshore and Arctic National Wildlife Refuge drilling to pop the speculative bubble.
Long before vast numbers of such Flexible Fuel Vehicles are on the roads, the OPEC cartel-induced speculative bubble that has contributed to the recent run-up in the price per barrel of oil will be lanced.
The Busang affair was not, first of all, a speculative frenzy such as the Dutch tulip mania of the 17th century or the South Sea Bubble of the 18th.
But then, when the speculative bubble collapsed, after the prices of things like companies no longer represented anything remotely resembling their underlying value, Alan Greenspan just bailed out the financial system.
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