Alan Greenspan is still trapped in his fantasies about the Free Market Fairy despite his admission that the Enron scandals showed that he was mistaken about the corrective nature of self-interest.
We will never have a perfect model of risk
By Alan Greenspan
Published: March 16 2008 18:25 Last updated: March 16 2008 18:25
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. But I hope that one of the casualties will not be reliance on counterparty surveillance, and more generally financial self-regulation, as the fundamental balance mechanism for global finance.
Monday, March 17, 2008
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment