Greenspan

robisc Re: Greenspan 25.10.08, 22:04

MarketWatch's top stories of the week
By MarketWatch

Everybody makes mistakes, even Alan Greenspan. That may well have been the
biggest news of the week.

The good news is that the once-respected chairman of the Federal Reserve
admitted in congressional testimony this week that he had made a mistake. But
the bad news is that it looks like he is at least partly mistaken about what he
got wrong.

Greenspan appears to believe his big mistake was that he believed in the
corrective power of self-interest in the marketplace. That belief was the
keystone to his free-market ideology. Self-interest was supposed to ensure that
banks and other companies didn't do anything that put their shareholders and
their equity at risk.

And clearly he was wrong about that. If we have learned anything over the past
year, it is that companies and individuals don't always make choices that
advance their self-interests. Markets don't reliably self-correct.

The bad news actually comes on two fronts. First, even though Greenspan
acknowledged this error, he didn't propose any significant changes to the
financial system to make up for it.

But Greenspan appears to have made a more profound mistake, which was to confuse
the importance of having an ideology with being ideological. It may be true, as
he told Congress Thursday, that we all need an ideology to help us organize our
approach to the world. But Greenspan, whose free-market ideology led him to
fight meaningful regulation for his entire career, didn't use his ideology this
way. Instead, he allowed it to govern all his decisions, even when the facts and
logic contradicted it.

That's not having an ideology. That's zealotry.

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polarbeer Re: Greenspan 24.10.08, 14:37

skad takie zaskoczenie?
- przemyslawo2 Re: Greenspan 24.10.08, 20:12
  
  > skad takie zaskoczenie?
  Zaskoczony nie jestem, ale nadal brak mi słów...
  jeden człowiek w dużej mierze przyczynił się do kryzysu na całym świecie, a
  teraz mówi, że on nie chciał i że jest zaskoczony.
robisc Re: Greenspan 25.10.08, 22:04

MarketWatch's top stories of the week
By MarketWatch

Everybody makes mistakes, even Alan Greenspan. That may well have been the
biggest news of the week.

The good news is that the once-respected chairman of the Federal Reserve
admitted in congressional testimony this week that he had made a mistake. But
the bad news is that it looks like he is at least partly mistaken about what he
got wrong.

Greenspan appears to believe his big mistake was that he believed in the
corrective power of self-interest in the marketplace. That belief was the
keystone to his free-market ideology. Self-interest was supposed to ensure that
banks and other companies didn't do anything that put their shareholders and
their equity at risk.

And clearly he was wrong about that. If we have learned anything over the past
year, it is that companies and individuals don't always make choices that
advance their self-interests. Markets don't reliably self-correct.

The bad news actually comes on two fronts. First, even though Greenspan
acknowledged this error, he didn't propose any significant changes to the
financial system to make up for it.

But Greenspan appears to have made a more profound mistake, which was to confuse
the importance of having an ideology with being ideological. It may be true, as
he told Congress Thursday, that we all need an ideology to help us organize our
approach to the world. But Greenspan, whose free-market ideology led him to
fight meaningful regulation for his entire career, didn't use his ideology this
way. Instead, he allowed it to govern all his decisions, even when the facts and
logic contradicted it.

That's not having an ideology. That's zealotry.

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