This is one of those things that explains why some people you see at Starbucks sometimes have QWERTY or FGHJK imprinted backwards on their foreheads.
There are a lot of terrible economists, advisers and government officials from the last decade or two who ought to have the decency to follow Mitt Romney’s remedy to “self deport,” or at least feel enough shame and embarrassment for their catastrophic failures while in office to refrain from further public life. Maybe they can come out for rhetorical flogging on America’s annual Day of Atonement.
One group would be led by people who lied us into wars, or wrote memos justifying torture or helped choreograph it while sitting safely in the Executive Office Building or covered it up later. Another group would be reserved for officials who caused millions of people to suffer because of stunningly bad economic advice and then blamed it on deficits.
At the top of that latter list that includes Robert Rubin and fellow Rubinites and Goldman Sachs alums would be Alan Greenspan, the man the media once worshiped as the “Maestro.” You’ll recall it was Greenspan who, months after the financial system he didn’t understand and failed to oversee blew itself up and nearly brought down the US economy, conceded to Congress that he’d made a mistake. His ideology incorrectly assumed financial markets are self-correcting and could be left to their own greedy devices, but it turned out this was wrong, he said. Catastrophically wrong. That’s what you call a permanently disqualifying mistake.
But that was in 2009, and since then, Alan Greenspan has forgotten what he said and hopes you have too. And because it’s convenient to their own beliefs, others still want to know his take on what’s wrong with the economy, especially if it reinforces their own misconceptions. And so there he was being interviewed by Larry Kudlow.
Here’s Krugman’s quick list of things to remember about the “Maestro’s judgment:
. . . the man who insisted that credit default swaps had made the financial system stable, that there was no housing bubble, that the housing market was poised for recovery in 2006, telling us that with interest rates at their lowest levels ever, what we need to worry about most is … the threat of rising interest rates.
The principal hope in a democracy is that as we muddle forward and make mistakes, we learn from them and eventually reject the false ideas and prophets. But the Constitution’s First Amendment is based on faith, hope this all works out; there are no guarantees, and the know nothings and the shoulda known betters will always exploit that.





18 Comments


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Of course, I agree with you. But the one thing I’ll note on Greenspan’s behalf is that he has the good sense to know that he fucked up and the grace to admit it. That puts him way ahead of Rubin, Summers, Bernanke, Geithner and most every economist on Obama’s staff.
Regarding which mistakes?
http://my.firedoglake.com/thingscomeundone/2011/07/26/another-lecture-on-imaginary-markets/
In what world do banks make any kind of loans without setting aside some margin incase the loans go bad?
http://online.wsj.com/article/SB10001424052748704718204574616470817688220.html
Greenspan’s world.
There are three others who should be seated at the same table:
Next to Greenspasm, should be Summerville, Geitnerass and RubinCiti!
The old fuck has learned nothing.
http://www.cnbc.com/id/47643118
Where was this Greespan when the Bush tax cuts were approved and Bush increased Government and Military spending to record levels?
http://mercatus.org/publication/spending-under-president-george-w-bush
This argument of KThug’s that interest rates are so low that we should be borrowing to stimulate the economy plays right into the deficit scolds’ hands and is self-defeating. It is the main reason that the argument between him and the MMT folks is so important for progressives.
Government doesn’t have to tax or borrow to spend. As long as we’re in that neo-liberal straight jacket, we’re doomed.
http://digg.com/news/politics/growth_in_government_spending_under_president_obama_slower_than_during_bush_reagan_administrations_1
Let me guess Greenspan either has a new book out or Greenspan is worried that Obama will tax the rich to pay for his current low levels of Government spending.
That or Greenspan is worried Obama might increase government spending to create jobs since Austerity is not working in the EU.
http://www.cnbc.com/id/47643118
Inflation is a non concern as long as the Fed is charging negative interest rates. Lack of consumer demand however because people don’t have jobs and are not buying stuff or because they fear losing their jobs is a problem Greenspan.
Whats your solution Greenspan create another Tech or Housing bubble?
FDR and Keynes spent money put us in debt and taxed the rich then he used the money to create jobs that worked in the real world Greenspan.
Greenspan presided over decades of the rich getting richer and the middle class and poor wages dropping in real terms adjusted for inflation.
Now that the chickens of the rich gambling and the people the rich feed off of being to weak to sustain the rich much longer have come to roost Greenspan says let the parasites feast until the host body they depend on is dead.
You have to wonder if there is some other motive going on here. Can these people be so stupid as to not know that deficit spending is not a constraint? The general public believes all that shit and it is convenient to use to further the neo
Liberal agenda. There are people who do not want a real recovery. So they just keep the lie going. Our debt is unsustainable and we must cut our spemding on the safety net. That way you don’t need high taxes and us rich folk get to keep it. Oh by the way, of you cut our taxes then we can create more jobs. Also cut corporate taxes too. It’s all good. Never mind the difference in income and wealth. That would be class warfare.
See @LukeWeAreChange (donations gratefully accepted at http://wearechange.org so he can go document the upcoming Bohemian Grove meeting) blow the doors off the dino, dead-tree M$M and confront Greenspan and 11 others including attendees Henry Kissinger, Tony Blair and Lord Jacob Rothschild at Bilderberg in Chantilly, VA:
12 raw videos (Bilderberg Day 1)
the rich and super rich cronies,that plundered the country
The fact that Greenspan might still be heard shows the rich don’t really care about facts or good sense. They just want their own beliefs to reverberate through the halls of government. They want their interests to be protected from the real competition of free markets. They don’t want risk.
Well, the system right now is about as rigged as it can be and corporations are making very high profits (perhaps all-time highs). Now that they’re going strong and the banks are stronger than two years ago it’s time to spread out the recovery with higher pay and more jobs. But, the rich are loathe to give away anything. They would rather grab all the dough and watch the system screech to a halt, then blame Obama and beg the Fed for a QE and other tax breaks to keep their fantasy going.
Well, there are no bailouts now and QE won’t help and gov’t is too far in debt to hand out more money. It’s time to really fix the system or watch it fall to the ground.
As the man would say on Dragnet,
just the facts, Ma’am.
http://smu.edu/experts/stories/batra-on-greenspan.asp
http://sjlendman.blogspot.com/2007/10/greenspans-dark-legacy-unmasked.html
http://www.youtube.com/results?search_query=Dragnet+Theme+I+think+1967&oq=Dragnet+Theme+I+think+1967&aq=f&aqi=&aql=&gs_l=youtube.12…8094.15685.0.17237.26.25.0.1.1.0.108.2186.22j3.25.0…0.0.A8w-CVK1mEY
(Is Dragnet theme search–there is no spam present whatsoever.)
Calling Greenspan a political whore is an insult to a real profession.
And why is Andrea “Mrs. Greenspan” Mitchell allowed to comment on anything to do with the financial meltdown that her hubby had a HUGE HAND in causing? I switch channels whenever I see her pious face and hear her unctuous voice.
I’ve said it before but it bears repeating, ” Release the animal spirits on Mr. Kudlow and Crew in the form of a pack of feral hounds immediately. Thanks, FDL. “