Greenspan contends that id BS was allowed to fail then other banks would have put aside more capital and the fed would not have had to save them.
Seems highly unlikely when asset impairment was in a race to zero with everyone helping out the race with type 5 trades.
“American policymakers, in recent years, faced with the choice to assist a major company or risk negative economic fallout, have regrettably almost always chosen to intervene,” Greenspan writes…..
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Greenspan should go off himself. Is this guy seriously arm-chair quarterbacking right now? I seriously can’t believe the audacity.
This is like George Bush telling Obama, “Hey, jackass, you’re really dicking around right now.” A lot of the crazy things that come across the wire, I just laugh at. But this one (clearly) gets under my skin.
You’re not alone…Yet the markets went on a hellacious run under his tutelage…It’s the hangover that’ll get you every time…..
wait, I thought for sure I remember reading about him saying something about how we should bail out the banks, burn down the excess housing inventory, and propose radical measures… I don’t know maybe someone can verify whether that’s correct or not.
Greenspan is a senile double talking politician.
B4 his career started he wrote a paper about the gold standard and how fiat currencies are destructive.
Then does the opposite in his career. Sell out!
glad to see this one irked you guys cause my blood boiled when reading this one.
Take a dirt nap old man…..
The closest I could find is that he said the fed had very little choice in bailing out bear sterns due to the interconnectedness of the system, and there was a high risk if something were not done.
well he was in charged when they bailed out long term capital management for the same reasons… they owed some important people money. Modern day loan shark style.
Well I guess it’s also safe to say that the housing market didn’t bottom in 2006 as Greenspan predicted.
his plan
1) get a fiat currency and get them deeply in debt
2)Go to the goldstandard at the height of the debt problem
3)Continue the same economic policy of borrowing
4)demand your payments in gold.
5)own the country’s gold
6)own the country.
7)Sellout the country and use it’s resources and gold to highest bidder after seizing it through force majure or through force.
8)bring country back to fiat currency after you have the fgold as hyperinflation begins and the country goes from the richest to a very weak country.
Okay maybe not but… he’s blabbing to the CFR that FIAT money has nowhere to go but gold.
http://georgewashington2.blogspot.com/2010/09/greenspan-fiat-money-has-no-place-to-go.html
@ maybe,
i think this is the route, b4 we go to gold:
http://alt-market.com/articles/182-doing-the-global-currency-shuffle