Alan Greenspan: What Went Wrong (with the Economy)

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.

My honest opinion is that only a genuine zombie would take this seriously.

It would be like taking marriage advice from Joey Buttafuco.
Sensitivity training from Hitler.
A flat belly workout book from Jabba the Hut.

He'll probably win the Pulitzer prize.

Idiot.

reply to post by Bassago

Bull#.

I read your words, Greenspan, before you decided to get in bed with the devil. You knew all of this before. I won't claim to know why you did it... but you made your bed... now sleep in it the way the rest of us have been forced to do upon threat of prison if we tried to not use the system you helped operate.

reply to post by BardingTheBard


Based on Greenspan's admitted failures, followed up by Bernanke's miserable performance to be continued by Janet Yellen's highly probable continuation of the failed policies I wished someone would have backed Ron Paul in regards to these villains.

Not going to happen in the short term but if we can wake people up... or we can just wait for the meltdown.

The economy hasn't been real in a long time. Corporation stock is way out of line compared to the assets of the companies. These corporations found that getting rid of half the upper management was beneficial, the ones on top are now making more money. They also found by downsizing personnel they have less headaches. Less work with more pay, why would they want to hire more people. We invented computers to replace employees, not to increase the intellect of the world. Computers can't seem to be creative enough to con people out of their money though so they still need some employees for that

Greenspan is the reason why the economy went bad. Him and that criminal cabal he used to represent.

Bernanke is under my protection,
but you Greenspan are reserved for special soul torture.
In perpetuity.

He concluded that fear has at least three times the effect of euphoria in producing market gyrations. "I wouldn't have dared write anything like that before," he says.

Alan Greenspan: What went wrong

Yeah,
fear IS three times as powerful ... under the #ing #ed up system you pushed.

You haven't even begun to regret.

Mike

mikegrouchy

He concluded that fear has at least three times the effect of euphoria in producing market gyrations. "I wouldn't have dared write anything like that before," he says.

I found that statement very interesting. He "wouldn't have dared write anything like that." So who exactly was he afraid of? Or was he just referring to damaging the economy?

Bassago

mikegrouchy

He concluded that fear has at least three times the effect of euphoria in producing market gyrations. "I wouldn't have dared write anything like that before," he says.

I found that statement very interesting. He "wouldn't have dared write anything like that." So who exactly was he afraid of? Or was he just referring to damaging the economy?

From the context I inferred that he, himself, would not have believed it.
That things would be that way. But, in my assessment, what he fails to
realize . . . still, is that it is a direct consequence of the system he was the
head off. Not all systems generate those kinds of results.

Mike

Good thread, all spot on with what's going down here.

He's such a crock of... It's all manufactured anyway. Their wallets grow either which way it goes.

dreamingawake

Their wallets grow either which way it goes.

Isn't that the truth. I'd bet when you boil it down that sentence is the Federal Reserve Act in brief.

Kind of like Wall St.

The only thing I care to hear coming out of Greenspan's (or any other Fed Reserve CEO's) mouth is him spilling the beans on who the damn shareholders are.

Anything else is wasted oxygen.