Oct

23

greenspan"Alan Greenspan, the former Federal Reserve chairman once considered the infallible maestro of the financial system, admitted on Thursday that he “made a mistake” in trusting that free markets could regulate themselves without government oversight…. 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."

article from nyt.com

"Citizen judges, I want to tell [you] how a man who spent thirty years in the party and worked a great deal, stumbled [and] fell … I have committed heinous crimes. I realize this. It is hard to live after such crimes . . . But it is terrible to die with such a stigma. Even from behind bars I would like to see the further flour-ishings of the country I betrayed." Genrikh Yagoda

"… I confirm the admission of my monstrous crimes . . . We were preparing for a coup d'etat, we organized kulak insurrections and terrorist groups … I would like those who have not yet been exposed and have not yet laid down their arms to do so immediately . . . Their only salvation lies in helping the party." Alexei Rykov

article from Time

GM Davies is the author of Play 1 e4 e5: A Complete Repertoire for Black, Everyman, 2005

Kim Zussman replies: 

I doubt Mr Greenspan has as much at stake as the bolsheviks did, though the interesting parallel does illustrate the easy job inquisitors have.

Given government ownership of assets and increased regulation decrease the risk premium, keeping risky assets at a durably lower price level?
 


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4 Comments so far

  1. Jeff Watson on October 23, 2008 8:50 pm

    I remember the huge drop in bond prices the day Greenspan was nominated….it spilled over into the wheat pit and caught me sleeping. Just another example that the market consists of hydra like tendrils that consume the unwary.

    Jeff

  2. steve on October 24, 2008 9:30 am

    My question is “What is Greenspan doing in front of congress anyway.” The man is retired. I would much prefer him to fade away as General Douglas Macarthur suggested old generals do rather than resurface repeatedly in a vain attempt to secure some legacy. What possible good can he do other than to give television time to a bunch of politicians who otherwise should be working behind the scenes rather than in front of the camera. We all know these interviews are completely inconsequential. They untimately go nowhere. In fact, I would much rather hear from Paul Volker or William Seidman than Greenspan.

    I have suffered through the whinings of Waxman for years. He has been a congressman my entire adult life. He appropriately represents the Hollywood, Bevery Hills mindset. He has never had a real job other than that in politics. He reminds me of the cop with a cup of coffee and donut inhand who shows up to a investigate a car wreck and asks “What happened? He always seems to be part of the drama and never the solution.

    It amazes me that these people make a career out of politics and yet nobody can specifically mention what ultimate good they accomplished.

  3. Nigel Davies on October 24, 2008 10:33 pm

    >“What is Greenspan doing in front of congress anyway.”

    If you want to put free markets on trial then who better than an 81 year old icon? Zhey have vays of making zhese 81-year-olds talk.

  4. steve leslie on October 25, 2008 10:12 am

    There is a great intercourse in Back to School worth revisiting:

    Dean Martin "Mr Melon, I am only going to ask you this question once. Did you cheat on the exam?"

    Mr. Melon "Dean Martin, I can not lie to you, no I did not.

    Dean Martin "I am satisfied. Phil?"

    Dr. Barbay "I am outraged!

    Dean Martin "Well gee whiz Phil, I asked the man, he said he didn't do it, what do you want me to do,torture him? ha ha ha."

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