Alan Greenspan: Self-Regulation Works Perfectly In My Mind. Not Sure Why It Fails In Real Life

Greenspan: How we got the financial crisis wrong (in his opinion).

It's swell that Alan Greenspan now sees the misalignment of incentives (after 35 years of catalyzing them).. as in the executives of publicly traded companies can take enormous risks which make them personally wealthy but ultimately lead to disaster for the company/shareholders and, in a bailout nation, taxpayers. Privatize profit, socialize risk. That's the system that Greenspan was instrumental in creating. So, good interview, but I would much rather see Bill Black interviewing Alan Greenspan. That would be incredible.

Mr. Greenspan, the most interventionist Fed Chairman in history, was also the free-world's leader of deregulation, desupervision, and de facto decriminalization. Greenspan and his disciples have spread neo-liberal ideas far and wide. It has been an incredibly effective campaign. It is hard to imagine anyone more effectively harnessing government and academia to support the free reign of corporate interests worldwide. What Mr. Greenspan lacked in terms of ability to provide uncompromised analysis, he made up for with an unmatchable ability to market and disseminate his dangerous ideas. 

So, yes, it's nice that Alan Greenspan now sees some of his folly, but when is he going to harness some of his brilliance in marketing and influence to actually correct some of the damage he did?

 

I am an attorney by profession. I am licensed to give legal advice to my clients in California. You are not my client. I am not giving you legal advice. I am not a Financial Adviser. I do not give ...

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