Alan Greenspan Led Us to Slaughter

By on May 8, 2010

Roger Lowenstein writes about the arrogance of Alan Greenspan, who was monumentally ignorant of the bubble in housing and kept interest rates too low for too long.

In a newly released transcript of a Federal Reserve Board meeting in March 2004, former Chairman Alan Greenspan argues against disclosing too much to the public lest the Fed “lose control of a process that only we fully understand.”

This statement ranks as a sign of monumental arrogance. It was Greenspan himself who didn’t understand — much less “fully understand”– that the Fed’s lax mortgage regulation and easy monetary policies were setting America up for a disastrous fall.

Source: Bloomberg

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