1)
Mr. Greenspan set out to find his blind spot step by step. First he drew the conclusion that the nonfinancial sector of the economy had been healthy. The problem lay in finance, because of its vulnerability to spells of euphoria and irrational fear. Studying the results of herd behavior provided him with some surprises. "I was actually flabbergasted," he says. "It upended my view of how the world works."2)
Mr. Greenspan won't say whether he has agreed with the decisions of current Fed chairman Ben Bernanke, but he will comment on the Fed's broader policies, which have become more aggressive since his time. "I'm not in favor of intervention, because markets so effectively function and work unless they are broken," he says.
Sunday, October 20, 2013
WHICH ALAN GREENSPAN ARE WE SUPPOSED TO BELIEVE?
The Wall Street Journal also has a review of Greenspan's new book and I found 2 statements that seem contradictory:
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