Naivety or stupidity which do you think
http://www.independent.co.uk/news/busin ... 71609.html
Self-regulation by Wall Street had failed, he said. "Those of us who have looked to the self-interest of lendinginstitutions to protect shareholder's equity – myself especially – are in a state of shocked disbelief."
And he went on: "I found a flaw in the model that I perceived is thecritical functioning structure thatdefines how the world works. That's precisely the reason I was shocked... I still do not fully understand why it happened and obviously to the extent that I figure where it happened and why, I will change my views. If the facts change, I will change."
http://www.independent.co.uk/news/busin ... 71614.html
What Mr Greenspan should really be kicking himself about is not his naive belief in the idea that markets are self regulating in their own interests, but his own failure to spot the extent of the mispricing, and then act on it. He's hardly alone in this failing, but then it was his job to keep the children under control. In any case, Mr Greenspan has now joined the greater regulation bandwagon. Yet it is endearing to see that he has not entirely lost his free market faith. Whatever regulatory changes are made, he says, will pale in comparison with the change already evident in markets. "Those markets for an indefinite future will be far more restrained than would any currently contemplated regulatory regime". Quite so. When markets get it wrong, they really know how to punish themselves. Unfortunately, it is the little guy, and not the responsible bankers, who takes the brunt of it.
Greenspan says crisis left him in 'shocked disbelief'
Greenspan says crisis left him in 'shocked disbelief'
I think its a ridiculous, self-serving conversion.
He seems to be saying that having dismembered the rule book that was written based on the experience of the last massive crash and subsequent depression, he was "shocked" that the people who run the companies proceeded to run up massive personal fortunes while trashing the shareholder value of those companies. What is he surprised about? That when the cats away the mice will play? What he probably really can't believe is how utterly idiotic the whole neo-liberal no regulation market philosophy is.
What he isn't mentioning, is that he encouraged all this, scolded people who wanted to impose harder regulatory structures, kept interest rates far too low, and generally pumped up the Wall Street financial houses until their arrogance and assurance that no one was ever going to intervene in their madness was complete. He has a lot to answer for, as do many of his fellow travellers.
He is also right of course, in that the markets are now punishing themselves by self-destructing after a decade of total denial about the reality of what way these top companies have been run. Short term maximum profits, zero long-term perspective or corporate responsibility.
He seems to be saying that having dismembered the rule book that was written based on the experience of the last massive crash and subsequent depression, he was "shocked" that the people who run the companies proceeded to run up massive personal fortunes while trashing the shareholder value of those companies. What is he surprised about? That when the cats away the mice will play? What he probably really can't believe is how utterly idiotic the whole neo-liberal no regulation market philosophy is.
What he isn't mentioning, is that he encouraged all this, scolded people who wanted to impose harder regulatory structures, kept interest rates far too low, and generally pumped up the Wall Street financial houses until their arrogance and assurance that no one was ever going to intervene in their madness was complete. He has a lot to answer for, as do many of his fellow travellers.
He is also right of course, in that the markets are now punishing themselves by self-destructing after a decade of total denial about the reality of what way these top companies have been run. Short term maximum profits, zero long-term perspective or corporate responsibility.
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
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along-for-the-ride
- Posts: 11732
- Joined: Wed Mar 02, 2005 4:28 pm
Greenspan says crisis left him in 'shocked disbelief'
Can you say, "cover your a$$"?
With all due respect. :rolleyes:
With all due respect. :rolleyes:
Life is a Highway. Let's share the Commute.
Greenspan says crisis left him in 'shocked disbelief'
So Alan Greenspan held a laissez-faire ideology which he now repudiates. How come he was controlling the interest rates then?
Sounds like yet another piece of propaganda to convince us that we have to have a financial crisis and that the economy needs regulation.
Effing hypocrites!!!
Sounds like yet another piece of propaganda to convince us that we have to have a financial crisis and that the economy needs regulation.
Effing hypocrites!!!
Greenspan says crisis left him in 'shocked disbelief'
Galbally;1033336 wrote: I think its a ridiculous, self-serving conversion.
He seems to be saying that having dismembered the rule book that was written based on the experience of the last massive crash and subsequent depression, he was "shocked" that the people who run the companies proceeded to run up massive personal fortunes while trashing the shareholder value of those companies. What is he surprised about? That when the cats away the mice will play? What he probably really can't believe is how utterly idiotic the whole neo-liberal no regulation market philosophy is.
What he isn't mentioning, is that he encouraged all this, scolded people who wanted to impose harder regulatory structures, kept interest rates far too low, and generally pumped up the Wall Street financial houses until their arrogance and assurance that no one was ever going to intervene in their madness was complete. He has a lot to answer for, as do many of his fellow travellers.
He is also right of course, in that the markets are now punishing themselves by self-destructing after a decade of total denial about the reality of what way these top companies have been run. Short term maximum profits, zero long-term perspective or corporate responsibility.
Like a little kid's cry. It wis'nae me.
He seems to be saying that having dismembered the rule book that was written based on the experience of the last massive crash and subsequent depression, he was "shocked" that the people who run the companies proceeded to run up massive personal fortunes while trashing the shareholder value of those companies. What is he surprised about? That when the cats away the mice will play? What he probably really can't believe is how utterly idiotic the whole neo-liberal no regulation market philosophy is.
What he isn't mentioning, is that he encouraged all this, scolded people who wanted to impose harder regulatory structures, kept interest rates far too low, and generally pumped up the Wall Street financial houses until their arrogance and assurance that no one was ever going to intervene in their madness was complete. He has a lot to answer for, as do many of his fellow travellers.
He is also right of course, in that the markets are now punishing themselves by self-destructing after a decade of total denial about the reality of what way these top companies have been run. Short term maximum profits, zero long-term perspective or corporate responsibility.
Like a little kid's cry. It wis'nae me.
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wildhorses
- Posts: 648
- Joined: Sun Oct 12, 2008 7:08 pm
Greenspan says crisis left him in 'shocked disbelief'
Greenspan is a bald faced liar. He knew all along what was going on and that it was not healthy for our overall economy and financial system.
Money was being made.....lots of money. I am sure Greenspan had some bets on the table as well.....and made some big bucks. He thought it was controllable and that the game could go on for awhile. He probably thought the game could be played till well after he was resting in peace.
This is what is wrong with America today. People don't care how they do their job, as long as the chit doesn't hit the fan while they are still around. The only thing that Greenspan is suprised about is that the time bomb went off when he was still around and has to face the mess...or explain himself. But make no mistake about it, he is not stupid. He knew all along.
Look at all the pension plans that large companies are now trying to retract. Whoever originally negotiated those pensions knew they could not be paid. But they also knew they would be safely retired or dead before they fell through. Then it is someone elses problem.
Greenspan thought he would be passed away....or that the consequences would not be so destructive. Or he thougt the deterioration would happen slowly over a period of time.....instead of the explosion that we have had.
BUT HE DID KNOW.
Money was being made.....lots of money. I am sure Greenspan had some bets on the table as well.....and made some big bucks. He thought it was controllable and that the game could go on for awhile. He probably thought the game could be played till well after he was resting in peace.
This is what is wrong with America today. People don't care how they do their job, as long as the chit doesn't hit the fan while they are still around. The only thing that Greenspan is suprised about is that the time bomb went off when he was still around and has to face the mess...or explain himself. But make no mistake about it, he is not stupid. He knew all along.
Look at all the pension plans that large companies are now trying to retract. Whoever originally negotiated those pensions knew they could not be paid. But they also knew they would be safely retired or dead before they fell through. Then it is someone elses problem.
Greenspan thought he would be passed away....or that the consequences would not be so destructive. Or he thougt the deterioration would happen slowly over a period of time.....instead of the explosion that we have had.
BUT HE DID KNOW.
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Oscar Namechange
- Posts: 31840
- Joined: Wed Jul 30, 2008 9:26 am
Greenspan says crisis left him in 'shocked disbelief'
Can't they find some loophole of fraudulent activity and throw him in jail???
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
Greenspan says crisis left him in 'shocked disbelief'
oscar;1042610 wrote: Can't they find some loophole of fraudulent activity and throw him in jail???
He hasn't done anything fraudulent or illegal-neither has anyone else. Being an idiot is not a crime.
He hasn't done anything fraudulent or illegal-neither has anyone else. Being an idiot is not a crime.
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Accountable
- Posts: 24818
- Joined: Mon May 30, 2005 8:33 am
Greenspan says crisis left him in 'shocked disbelief'
OpenMind;1033395 wrote: So Alan Greenspan held a laissez-faire ideology which he now repudiates. How come he was controlling the interest rates then?
Sounds like yet another piece of propaganda to convince us that we have to have a financial crisis and that the economy needs regulation.
Effing hypocrites!!!
Greenspan was not laissez-faire!! He gave testimonies and adjusted interest rates to actively keep the economy going up artificially, long after it would have corrected itself naturally. Greenspan was instrumental in creating all of our recent market bubbles.
eta: Hi OM! Long time no see. Missed ya!
Sounds like yet another piece of propaganda to convince us that we have to have a financial crisis and that the economy needs regulation.
Effing hypocrites!!!
Greenspan was not laissez-faire!! He gave testimonies and adjusted interest rates to actively keep the economy going up artificially, long after it would have corrected itself naturally. Greenspan was instrumental in creating all of our recent market bubbles.
eta: Hi OM! Long time no see. Missed ya!
Greenspan says crisis left him in 'shocked disbelief'
Accountable;1042883 wrote: Greenspan was not laissez-faire!! He gave testimonies and adjusted interest rates to actively keep the economy going up artificially, long after it would have corrected itself naturally. Greenspan was instrumental in creating all of our recent market bubbles.
eta: Hi OM! Long time no see. Missed ya!
Hi, ACC. It's good to be back. I've missed my friends here.
Anyhow, this is an excerpt from the article linked to in the first post. This is the first paragraph of that article:
Alan Greenspan, the former chairman of the US Federal Reserve, has dramatically repudiated large parts of his laissez-faire ideology and joined the chorus of voices saying that the credit crisis reveals a need for more regulation of the finance industry.
I otherwise agree with you. He did indeed make adjustments, etc. Hence my post. If he held a laissez-faire ideology, why was he tinkering with the interest rates? Maybe his tinkering contributed to the mess we have now.
The housing market was inflated to unsustainable levels, in part by Mr Greenspan's keeping interest rates too low for too long, his critics argue.
Seems we're arguing the same point.
eta: Hi OM! Long time no see. Missed ya!
Hi, ACC. It's good to be back. I've missed my friends here.
Anyhow, this is an excerpt from the article linked to in the first post. This is the first paragraph of that article:
Alan Greenspan, the former chairman of the US Federal Reserve, has dramatically repudiated large parts of his laissez-faire ideology and joined the chorus of voices saying that the credit crisis reveals a need for more regulation of the finance industry.
I otherwise agree with you. He did indeed make adjustments, etc. Hence my post. If he held a laissez-faire ideology, why was he tinkering with the interest rates? Maybe his tinkering contributed to the mess we have now.
The housing market was inflated to unsustainable levels, in part by Mr Greenspan's keeping interest rates too low for too long, his critics argue.
Seems we're arguing the same point.
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Accountable
- Posts: 24818
- Joined: Mon May 30, 2005 8:33 am
Greenspan says crisis left him in 'shocked disbelief'
OpenMind;1043087 wrote: Hi, ACC. It's good to be back. I've missed my friends here.
Anyhow, this is an excerpt from the article linked to in the first post. This is the first paragraph of that article:
I otherwise agree with you. He did indeed make adjustments, etc. Hence my post. If he held a laissez-faire ideology, why was he tinkering with the interest rates? Maybe his tinkering contributed to the mess we have now.
Seems we're arguing the same point.
I couldn't ask for a better ally. :-6
Anyhow, this is an excerpt from the article linked to in the first post. This is the first paragraph of that article:
I otherwise agree with you. He did indeed make adjustments, etc. Hence my post. If he held a laissez-faire ideology, why was he tinkering with the interest rates? Maybe his tinkering contributed to the mess we have now.
Seems we're arguing the same point.
I couldn't ask for a better ally. :-6
Greenspan says crisis left him in 'shocked disbelief'
Accountable;1043102 wrote: I couldn't ask for a better ally. :-6
I will always side with individual freedom. But I realise that the social structure has to be right for individual freedom to be viable.
I will always side with individual freedom. But I realise that the social structure has to be right for individual freedom to be viable.