posted on Oct, 19 2013 @ 11:37 AM
So the previous Federal Reserve Chairman has finally figured out what the rest of us have been saying all along. That's just great, thanks a lot
Greenspan. You're a credit to the economist cabal and we (don't) appreciate all that your little cabal has done for us.
Alan Greenspan: What Went Wrong
"I've always considered myself more of a mathematician than a psychologist," says Mr. Greenspan. But after the Fed's model failed to predict
the financial crisis, he realized that there is more to forecasting than numbers. "It all fell apart"
"The Federal Reserve has got the most elaborate econometric model, which incorporates all the newfangled models of how the world works—and it missed
it completely." He says JP Morgan had put out a forecast three days before the crisis saying the economy was on the rise. And as late as 2007, the
International Monetary Fund also said that global risk was declining. "A few days [after the crisis hit], I run into an article, and it is titled, 'Do
we economists know anything?' " he says.
'Do economists know anything,' apparently not. So the Fed has the "the most elaborate econometric model, which incorporates all the newfangled
models" and which after blindly following "It all fell apart". OK thanks for that Alan, that's peoples lives you talking about.
With his new book, Mr. Greenspan hopes to provide politicians and the public with a road map to avoid making the same mistakes again. His
suggestions include reducing entitlements, embracing "creative destruction" by letting facilities with cutting-edge technology displace those with low
productivity, and fixing the political system by encouraging bipartisanship.
What! After he and his successor lead us down this rosy path he's trying to sell us a book on how to fix it? While some of those ideas are good (we
could've told you that already Alan) it seems a little late. Also why would anyone listen to you anyway?
He hasn't yet sent a copy to Janet Yellen, the nominee to be the next Fed chief. Though they are good friends, he says, "she and I don't agree
on lots of things and never have, but I enjoy talking to her because she has arguments and logic behind it."
No she doesn't agree, Janet Yellen will continue in the failed path of Ben Bernanke pumping a trillion dollars a year of fiat money into a failed
economic system trying to maintain the status quo. America buckle up and prepare for the ride of your lives.
edit on 735am2828am112013 by
Bassago because: (no reason given)