Credit crisis was obvious to Greenspan -

Quotes of the day on the financial turmoil that erupted in August by Alan Greenspan:

'an accident waiting to happen,'

'Credit spreads across all global asset classes had become compressed to clearly unsustainable levels,'

'Something had to give. If the crisis had not been triggered by a mispricing of securitized US subprime mortgages, it would have eventually erupted in some other sector of our market,'

If it was that obvious, then why was not something done? In hindsight our vision is very good.

It is interesting to read the comments policy makers make, but that does not help with determining what will happen next. However, when policy-makers realize that their choices will have an impact on asset price inflation, we will be in a better position to move forward. A key issue over the last ten years for macro-trading is determining the relationship between monetary policy and asset inflation not goods inflation.