How Greenspan's Ideas Ruined the Economy

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News & Politics

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• alan
• greenspan
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• crisis
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• shocked
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[Captain0Newman]

@sniped101

So the government should have let the world economy go under entirely?! That is your purposed solution?! The libertarian ideology that was pushed by greenspan in the first place which set up the conditions for the crisis was also responsible for major cutbacks in government power. They assumed government would bail them out because of the massive disaster that would happen if government didn't.

[urparanoia]

@sniped101 -Dubya and Paulsen spent 700 billion and O spent more so who do you blame since both conserves and dems did the same ?

[urparanoia]

@sniped101 -We're talking about 2 different things.Greenspan was thought to be a rock star when Born spoke to congress.No one with the exception of Born could believe the gravy train would ever stop or could imagine failure when the money was rolling in.Even Clinton felt that Greenspan was correct.You may not be in favor of the bailout but during the great depression this happened to a lesser degree.My comment was in regard to Greenspan being wrong about conservative ideology being correct

[sniped101]

@urparanoia and guess who i blame for that? I will give u a hint.. not greenspan...

He wanted banks to regulate themselves and they failed.. and guess what? They should have failed but they didnt.... why? because they knew the government would have bailed them out. I don't blame them.. i blame the government for bailing them out... do you?

[urparanoia]

@sniped101 -Actually Greenspan was wrong and he admitted it to congress in the fall of 2008. Wesley Born fought him to regulate OTC Derivatives and because money was being made, until it wasn't , no one listened. She spoke of a financial crisis that could result if there was no regulation. Nearly 10 yrs to the day her predictions came true. Greenspan admitted that conserve ideology was flawed, bankers couldn't be trusted to regulate themselves and such practices caused the financial meltdown.

[sniped101]

@PADRAEG exactly!! 

[sniped101]

greenspan was right but the issue was we didnt let the banks fail..

of course they are going to care about themselves because WE set it up that way.

[PADRAEG]

Problem is that the professional derivative traders are protected by ~ free gov't insurance, which of course, throws out Greenspan's entire thesis!

[LloydMadoff]

@Mufaso1000 read about commodities futures modernization act. i wouldn't say greenspan is the only guy, but he was in charged of a regulatory agency and backed deregulation of the markets. that makes him prime target.

[Ddvex]

@LloydMadoff

The only way a DEGENERATE GAMBLER stops taking risks is for him to go lose all his money. I'm sure that would teach him a very good lesson, and even if it didn't, he would still stop taking risks because he's out of money.

You would need to be stupid to give a DEGENERATE GAMBLER your money and expect that a REGULATOR check over him in order that he doesn't lose it. He will find a way to gamble it all; regulator or no regulator.

Solution: STOP giving your money to GAMBLERS!!!