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Greenspan Shrugs
Libertarians believe responsibility is for everyone else
It's easy to blame the nascent recession on George Bush, but it isn't fair. The man who deserves more blame is former Federal Reserve chairman Alan Greenspan (who is closer to Bill Clinton). By constantly lowering interest rates, neglecting to regulate mortgage lending and promoting the idea that exotic home loans would be good for the market, Greenspan blew more air into the housing bubble than anyone.
As a libertarian and former Ayn Rand acolyte, Greenspan believed that markets regulate themselves. In the long term, he might be right – some would say what we're seeing now is simply a painful adjustment. But, as another economist said, "in the long run, we'll all be dead." Greenspan was appointed to help make sure the market didn't leave too many people homeless in the meantime – and he and his ideology failed miserably. So why won't he go away?
In a Wall Street Journal interview, Greenspan defends his reputation under the guise of "getting the lessons of the crisis right." To most Americans, those lessons would indicate that the government shouldn't encourage speculative excess, and that Greenspan is a little gnome. (Sure, he's real smart, but how much damage have the best and the brightest done to this country already?) But, like Bush The Decider, Greenspan says he doesn't regret a single decision.
It takes a certain kind of ego to express such confidence: Not one, single decision over the course of almost two decades? Come on. And even if he was right most of the time – which I don't believe – shouldn't he express some human sympathy for those whose houses have been foreclosed on? Or are the audiences that pack his six-figure speaking engagements interested in other things.
As a libertarian and former Ayn Rand acolyte, Greenspan believed that markets regulate themselves. In the long term, he might be right – some would say what we're seeing now is simply a painful adjustment. But, as another economist said, "in the long run, we'll all be dead." Greenspan was appointed to help make sure the market didn't leave too many people homeless in the meantime – and he and his ideology failed miserably. So why won't he go away?
In a Wall Street Journal interview, Greenspan defends his reputation under the guise of "getting the lessons of the crisis right." To most Americans, those lessons would indicate that the government shouldn't encourage speculative excess, and that Greenspan is a little gnome. (Sure, he's real smart, but how much damage have the best and the brightest done to this country already?) But, like Bush The Decider, Greenspan says he doesn't regret a single decision.
It takes a certain kind of ego to express such confidence: Not one, single decision over the course of almost two decades? Come on. And even if he was right most of the time – which I don't believe – shouldn't he express some human sympathy for those whose houses have been foreclosed on? Or are the audiences that pack his six-figure speaking engagements interested in other things.
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