Alan Greenspan is a prominent central banker who understands finance the way most of us just do not. He is a very capable man who had the ear of presidents and people who matter. He is also the man who brought us the financial bubble that is now bursting and the depression has just recently begun [ December 2008 ]. He claimed that he could not see a bubble until after. Key datum: He is a Jew. Believe him if you want. I do not.
Greenspan presided over not one but two financial bubbles. After the high-tech bubble popped, in 2000–2001, he helped inflate the housing bubble. The first responsibility of a central bank should be to maintain the stability of the financial system. If banks lend on the basis of artificially high asset prices, the result can be a meltdown—as we are seeing now, and as Greenspan should have known [ and did - Editor ]. He had many of the tools he needed to cope with the situation. To deal with the high-tech bubble, he could have increased margin requirements (the amount of cash people need to put down to buy stock). To deflate the housing bubble, he could have curbed predatory lending to low-income households and prohibited other insidious practices (the no-documentation—or “liar”—loans, the interest-only loans, and so on). This would have gone a long way toward protecting us. If he didn’t have the tools, he could have gone to Congress and asked for them.
That is what Joe Stiglitz, a Nobel Prize winning economist has to say about the man. Joe is a Jew too.
Alan Greenspan ex Wiki
On June 2, 1987, President Reagan nominated Dr. Greenspan as a successor to Paul Volcker as chairman of the Board of Governors of the Federal Reserve, and the Senate confirmed him on August 11, 1987. After the nomination, bond markets experienced their biggest one-day drop in 5 years. Just two months after his confirmation he was faced with his first crisis—the 1987 stock market crash.
His terse statement that the Fed "affirmed today its readiness to serve as a source of liquidity to support the economic and financial system"  is seen by many as having been effective in helping to control the damage from that crash.
Another famous example of the effect of his closely parsed comments was his December 5, 1996 remark about "irrational exuberance and unduly escalating stock prices" that led Japanese stocks to fall 3.2%.
On May 18, 2004, Greenspan was nominated by President George W. Bush to serve for an unprecedented fifth term as chairman of the Federal Reserve. He was previously appointed to the post by Presidents Ronald Reagan, George H. W. Bush and Bill Clinton.
Greenspan's term as a member of the Board ended on January 31, 2006, and Ben Bernanke was confirmed as his successor.
The damage he did lives on.
Goldman Sachs Is The Wrong Target - Try Greenspan
The SEC lawsuit against Goldman charging that the firm misled sophisticated institutional clients bewilders me. Of all the institutions and individuals who deserve blame for causing the financial crisis -- and there are many -- Goldman didn’t even come close. In fact, had other investment banks acted as Goldman did in the subprime market, there never would have been a financial crisis to begin with.
Before I explain my last point, I want to reveal those who are on my “most responsible for the crisis” list. First and foremost are the CEOs of the failed institutions -- Jimmy Cayne of Bears Stearns, Dick Fuld of Lehman Brothers, and Hank Greenberg (and his successor, Martin Sullivan) of AIG.............
We must also finger the regulators who never recognized that the hundreds of billions of dollars of credit default swaps that AIG, supposedly a regulated insurance company, were writing against subprime mortgages required either reserves or were worthy of concern. Particularly culpable was Alan Greenspan. who denied that a nationwide real estate bubble could ever exist and wrongly believed that the big investment banks had fully protected themselves from this risk.
And then there are the credit rating agencies, particularly Standard and Poor’s and Moody’s who had no concept how to determine the risk of these complex housing securities yet confidently gave many of them the same AAA rating accorded US Treasury bonds.
Finally, don’t forget Fannie Mae and Freddie Mac, the huge government-sponsored mortgage enterprises protected by Congress who gave their stamp of approval and encouraged subprime lending at the behest of Congress. The rescue of these mortgage giants will end up costing taxpayers hundreds of billions of dollars, far more than the total cost of Treasury and federal support to all the private-sector firms.
Mr Siegel, a Jew one assumes makes a good case for Goldman and against the rest but seems to feel that Greenspan was more fool than rogue. I feel rather differently.
Greenspan: This Is The Worst Economy I've Ever Seen
Alan Greenspan - Wikipedia, the free encyclopedia
"Alan Greenspan (born March 6, 1926 in New York City) is an American economist and was from 1987 to 2006 the Chairman of the Federal Reserve of the United ..."
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"23 Oct 2008 ... Federal regulators told Congress they’re working on a plan that could help homeowners escape foreclosure in a crisis that former Fed chief ..."
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"31 Jul 2008 ... Former Fed Chairman Alan Greenspan said that the housing market is “nowhere near the bottom” and that the economy is “right on the brink” of ..."
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"16 Sep 2007 ... Greenspan on the 'irresponsible' Bush AMERICA’s elder statesman of finance, Alan Greenspan, has shaken the White House by declaring th."
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"23 Oct 2008 ... WASHINGTON: For years, a congressional hearing with Alan Greenspan was a marquee event. Lawmakers doted on him as an economic sage. ..."
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"24 Oct 2008 ... Almost three years after stepping down as the Fed chair, a humbled Alan Greenspan admitted he had put too much faith in the self-correcting ..."
19. Real Time Economics : Greenspan Excerpts: Housing Stabilization ...
"13 Aug 2008 ... The following are excerpts from an interview with former Federal Reserve Chairman Alan Greenspan conducted by David Wessel, The Wall Street ..."
20. Greenspan - I was wrong about the economy. Sort of | Business ...
"24 Oct 2008 ... Former Federal Reserve chairman and cheerleader of deregulation concedes ' mistake' in free market ideology."