Posts Tagged ‘Alan Greenspan’

Regulators Take a Coffee Break

January 15, 2011

Regulators Take a Coffee Break

Way back in 2005 the U.S. economy was in high cotton under the leadership of America’s first MBA president, financial genius George W. Bush. No one was worried about the White House climate of deregulation and non-enforcement since the country’s industrial capacity had been successfully converted to the manufacture of huge paper profits instead of boring, useful things.

The economy was one big teenage beer bash, but there was no anxiety because we had an adult chaperone. Alan Greenspan was still Chairman of the Federal Reserve.

A newly-released transcript of a 2005 Federal Reserve Open Market Committee meeting, however, shows Mr. Greenspan’s reaction to warnings of impending Housing Bubble doom by the Fed’s Board of Governors:

“Let’s take a break for coffee.”

The full meeting transcript is here, but Salon’s Andrew Leonard details key excerpts, including Fed Governor Mark Olson’s prescient view of mortgage-backed securities.

 

Related: “The Fed Has Spoken: No Bailout for Main Street,” Ellen Brown, Truthout.

 

Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

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Alan Greenspan at FCIC Hearing

April 8, 2010

Alan Greenspan at FCIC Hearing

Formerly legendary former Federal Reserve Chairman Alan Greenspan testified before the Financial Crisis Inquiry Commission on Wednesday.

The crisis? It wasn’t him and nobody saw it coming.

Free Market Fundamentalists take note: Mr. Greenspan has reversed his career-long position and now favors meaningful financial services regulation.

 

Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.