Greenspan is a fine artist – too late for Hollywood

He is a really smart guy. I have to admit that so far he came up with the best defense strategy I have heard in these hearings so far. Nevertheless, he screwed the world – as I stated in an earlier blog – before he was hired to the FED, he was a lobbyist for financial institutions with the task to deliberate the bank regulations. That’s why it’s so surprising he became a chairman of the FED. For me, it’s a conundrum how exactly the wrong people get hired into US administrations crucial position. Certainly Secretary Paulson is not fit to service the country well, as one of the central CEO’s off Wall Street who created this crisis. Nor the Secretary of Energy Mr. Samuel Bondman. He also worked for Wall Street and surprisingly the energy reserves were aggressively filled in the big crude oil boom of the last year – he participated buying up to 130 – now would be a good time to buy – isn’t that strange that he supported directly that bubble?

Former Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

Alan Greenspan
Lauren Victoria Burke / AP
Alan Greenspan

Despite concerns he had in 2005 that risks were being underestimated by investors, “this crisis, however, has turned out to be much broader than anything I could have imagined,” Greenspan said to the House of Representatives Committee on Oversight and Government Reform.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity (myself especially) are in a state of shocked disbelief,” said Greenspan, who stepped down from the Fed in 2006.

Banks and other financial institutions need public support, such as the recently approved $700 billion bailout package, to avoid a serious reduction in credit, he said.

While Greenspan was once hailed as one of the most accomplished central bankers in U.S. history, the low interest rates during his final Fed years have been blamed for fueling the housing bubble and eventual crash that touched off the current financial crisis.


~ by behindthematrix on October 23, 2008.

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