Create view and alter Session gets 0RA-01031

Question

I can't create a view after using ALTER SESSION set current_schema without using an explicit schema. I get ORA-01031. Is this a known bug? Here are the details:
1. Log on as SYSTEM
2. ALTER SESSION set current_schema=FRED;
3. CREATE VIEW vFoo as select * from Foo;     -- ORA-01031: insufficient privileges
4. CREATE VIEW FRED.vFoo as select * from Foo;     -- this works!
I've read where some privileges need to be granted directly. In fact, if Fred grants select privilege on Foo to SYSTEM, the statement in #3 above works. However, something doesn't seem right because why does #4 succeed without the GRANT?
In case you're wondering why I don't just use #4 above, which does work, it's because I've got a script that will be run by customers to create tables, views, etc. in an arbitrary schema and the schema is associated with a user with limited permissions. Hence, the use of the ALTER SESSION.

Answer 1

See, You looged as SYSTEM (Scheme = SYSTEM)
Now you alter your session to another schema FRED.
Now if you want to access SCHEMA of FRED, You need to connect first.
SQL > connect user/password@host
Then
SQL > CREATE VIEW vFoo as select * from Foo;
View created.