Greenspan: I “made a mistake”
facing a firing line of questions from washington lawmakers, alan greenspan, the former federal reserve chairman once considered the infallible maestro viagra de of the economic system, admitted on thursday that he “made a mistake” in unsuspicious that free markets could regulate themselves without government error.
A fervent proponent of deregulation during his 18-year tenure at the Fed’s helm, Mr. Greenspan has faced mounting criticism this year for having refused to consider cracking down on credit derivatives, an unchecked market whose excesses partly led to the current financial crisis.
Although he defended the use of derivatives in general, Mr. Greenspan, who left office in 2006, told members of the House Committee of Government Oversight and Reform that he was “partially” wrong in not having tried to regulate the market for credit-default swaps.
But in a tense exchange with Representative Henry A. Waxman, the California Democrat who is chairman of the committee, Mr. Greenspan conceded a more serious flaw in his own philosophy that unfettered free markets sit at the root of a superior economy.
“I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms,” Mr. Greenspan said.
Referring to his free-market ideology, Mr. Greenspan added: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”
Mr. Waxman pressed the former Fed chair to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Mr. Waxman said.
“Absolutely, precisely,” Mr. Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.”
Related posts: Satan disciples, Aubrey o day before and after
[...] Pittsburgh mccain [...]
[...] Pittsburgh mccain [...]
[...] small in stature, he is blessed with a giant heart. his words came out softly. almost tearfully. detective herman yan yesterday walked into a brooklyn courtroom and bravely faced down the three men who allegedly wanted him dead but failed. he…Related posts: Aubrey o day before and after, Pekingese dog, 2008 president election results, Satan disciples, Pittsburgh mccain [...]