Tuesday, March 18, 2008

Pin the tail on Greenspan Where it Belongs

From Lew Rockwell again. The warnings that Greenspan speaks of have still not really happened.


'Oh, Magoo, You’ve Done It Again!'
by Frederick Sheehan

Alan Greenspan’s instinct for self-exculpation reached new heights in the March 17, 2008, Financial Times. In "We Will Never Have a Perfect Model for Risk," he writes a model essay intended to eliminate risk – the risk he might be held accountable for the imploding banking system that he failed to regulate. Nowhere would the reader glean the author had a hand in the topics he speaks of with such authority. Nowhere would the reader detect a hint that the practices and models the former Federal Reserve chairman now condemns were once either blessed or ignored under his authority.

We read in the FT: "The crisis will leave many casualties. Particularly hard hit will be much of today’s financial risk-valuation system, significant parts of which failed under stress. Those of us who look to the self-interest of lending institutions to protect shareholder equity have to be in a state of shocked disbelief."...read it all

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