Getting back to your topic, guess who else is talking about this? DU.
Brooksley Born Excoriates Alan Greenspan: “You Failed” ...
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8107101
Brooksley Born was silenced in 1997 for her warning. ...
OK, I was raised in a family that could make sailors blush. I can handle it. BRB ...
The DU thread of this topic:
Post 1
Brooksley Born Excoriates Alan Greenspan: “You Failed”
midnight (1000+ posts) Wed Apr-07-10 01:46 PM
Original message
Brooksley Born Excoriates Alan Greenspan: “You Failed”
Source: FDL
“You failed to prevent many of our banks from consolidating and growing to a size that are now too big or too interconnected to fail,” Born added. She added that Greenspan’s views on deregulation, which he took as an article of faith, contributed to the Federal Reserve’s failure in delivering on its mandate.
Looking as angry as he could at his advanced age, Greenspan replied, “The flaw in the system I acknowledged was an ability to fully understand the state of potential risks that were fully untested… That means we were under-capitalizing the banking system for 40 or 50 years.”
He then pivoted to a defense of his work, using an innocent bystander argument. “I don’t have the discretion to use my own ideology to affect my judgments on what Congress did. If somebody asked my view on a particular subject, I would give it to them. But I ran my office as required by law… I fundamenally disagree with your perspective.”
This is frankly ridiculous. Alan Greenspan was known during his days at the Fed as “The Oracle.” Every word of his moved the markets and moved politicians. His viewpoints absolutely contributed to the deregulation of the financial sector. He also had lots of broad discretion while at the Fed to deal with the housing bubble. Instead he hyped it.
If anyone was watching this but me and the WSJ, they would have seen a cornered rat. Born nailed Greenspan – although, given the relative lack of interest in the FCIC, the benefit to that will be merely psychic in nature.
[continuing]
Oh boy! More idiots who don't know what they're talking about. Why should I care?