Greenspan Destroys Deregulation in 16 Seconds

Henry Waxman's Congressional Committee questions Alan Greenspan. Greenspan meets greed, shows in one answer why "trusting the markets" is epic fail.

Waxman: So where do you think you made a mistake then?

Greenspan: I made a mistake in presuming that the self-interest of organizations, specifically banks and others, was such as they were best capable of protecting their own shareholders.

Category:

News & Politics

Tags:

• Alan
• Greenspan
• Deregulation
• Henry
• Waxman
• Financial
• Crisis
• Hearing
• Oversight
• Committee
• Congress

[accountNo9]

What a joke, Greenspan himself removed the incentive for self interest by essentially guaranteeing that the banks would be bailed out upon failure. Furthermore this in-fact makes it uncompetitive for a bank not to take on the riskier deals, as it will fall behind its competitors, who are also insured to do the same.

RON PAUL 2012, deregulation and deconstruction of the Fed is the only way - get back to the true old American Capitalism.

[FarmingFractals]

Good way for Greenspan to scapegoat the banks so no one pays attention to the actions of the Fed. The Fed kept interest rates artificially low and expanded the suppy of credit that led to the housing bubble.

[jackworlidge1]

@Welsh77 what a load of tosh! ""there is no alternative so far discovered to free markets" WHAT? what about totalitarian in china where its only partially free? north korea is communist- these are not free markets but what is produced is what the government decides to make- there is no also market mechanism to allocate these resources.

I would be interested to hear you justify your claim that it is all the governments fault! You should try at least as opposed to assertinga partially false view

[Gonzoidzz]

Greenspan, just another Jew that robbed the people blind.

[Drahthaar422]

Yeah, no shit, Greenspan, because you and your Fed cronies have essentially told big banks, "If you do stupid shit, fuck it, we'll give you more money." Humans are greedy, and if you tell them, "You can do whatever the fuck you want and you'll be protected" they're going to do whatever the fuck they want. So it's YOUR fault. This is fucking stupid.

[jneil2007]

The best regulation that we don't have is failure. If the fat cats could go under like everyone else they wouldn't run these derivative scams and fractional reserve lending. End the fed or kiss this country goodbye.

[tadaa11]

@ruirodtubeYour looking at a symptom of Keynesian economics.Paul Volcker, one of Obama's economic advisers said "the amount of credit creation which is reflected on the asset and liability side of the finance and investment firms has come home to roost. The credit/gnp in the market use to be even, but now its 300%-400%." This is how the fed creates an illusion of prosperity, but really its just leverage and consumption, instead of savings and production.Don't be fooled by the machine

[tadaa11]

@FarmingFractals So simple, yet thick skull socialists are still saying the same thing. Yeah, just throw some regs on it cause that's worked in the past.

[mgroves80]

@DREwestcoast Making personal attacks doesn't make a point. Try replying with a counter argument next time.

[grimasatemyhamster]

I'm sorry. How did he 'destroy deregulation'? He made a statement without providing any facts surrounding the situation. Deregulation was not the problem. Government intervention as a safety net for corrupt companies was the problem.