tag:blogger.com,1999:blog-6762928.post2546461260874020601..comments2024-01-03T05:23:36.046-08:00Comments on The Citizens: Greenspan Rings HollowUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6762928.post-51948247353829457942008-10-23T16:18:00.000-07:002008-10-23T16:18:00.000-07:00I share the frustration with Mr Greenspan. His at...I share the frustration with Mr Greenspan. His attitude has always been that the Reserve should mop up after a bubble bursts, which is fine as long as you don't have some fundamental flaw in your regulations, or that there aren't other influences on the system such as other countries keeping their currency pegged low.<BR/><BR/>I'm not sure what is the situation with regards to US is adding amounts to the original $700B, but the costs aren't going to be that high. My understanding is that they are swapping current assets which no-one will buy due to the gummed up money markets for treasury bonds with such a low yield there is practically no interest paid. The assets that the government are getting are at a discount, so in the long term, even with defaults, the government may even make a profit. People want treasury bonds because there is no risk of default (by definition the government can raise taxes or print more money to cover them). That is of course assuming you are a large enough country and not someone like Iceland (the banks they nationalised had a combined debt something like four times GDP).<BR/><BR/>I guess this seeming like a US problem was always going to happen. It appeared in the US first through the subprime mess, but when you think about it the US economy is so large it was dragging everyone else along with it so probably had to appear in the US first.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6762928.post-46898248232472285082008-10-23T16:14:00.000-07:002008-10-23T16:14:00.000-07:00Interesting. I didn't know he was an Ayn Rand foll...Interesting. I didn't know he was an Ayn Rand follower. But it totally makes sense now that I know it. And he wasn't the only one of our decision makers who believed Ayn Rand. That much is now apparent.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6762928.post-41434026601781054382008-10-23T15:11:00.000-07:002008-10-23T15:11:00.000-07:00I believe it's pronounced \ˈsō-sh(ə-)list\;-)I believe it's pronounced <BR/><BR/>\ˈsō-sh(ə-)list\<BR/><BR/>;-)Raised By Republicanshttps://www.blogger.com/profile/03461006522141969925noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-86400880782940285232008-10-23T11:47:00.000-07:002008-10-23T11:47:00.000-07:00Ah, but can you pronounce it correct? I believe i...Ah, but can you pronounce it correct? I believe it sounds like "canes" not "keens"The Law Talking Guyhttps://www.blogger.com/profile/17886791396468512490noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-49445826245138843982008-10-23T11:08:00.000-07:002008-10-23T11:08:00.000-07:00Quick note: Milton Friedman said "We are all Keyne...Quick note: Milton Friedman <A HREF="http://www.time.com/time/magazine/article/0,9171,842353-1,00.html" REL="nofollow">said</A> "We are all Keynesians now" in 1964. Nixon may also have echoed it later.Dr. Strangelovehttps://www.blogger.com/profile/14407042105777411150noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-61825786851064868112008-10-23T10:39:00.000-07:002008-10-23T10:39:00.000-07:00"We're all Keynesians now." - Richard Nixon (1972)..."We're all Keynesians now." - Richard Nixon (1972)Raised By Republicanshttps://www.blogger.com/profile/03461006522141969925noreply@blogger.comtag:blogger.com,1999:blog-6762928.post-86070386408774324352008-10-23T10:29:00.000-07:002008-10-23T10:29:00.000-07:00I actually read Greenspan's autobiography, "The Ag...I actually read Greenspan's autobiography, "The Age of Turbulence." He is a disciple of Ayn Rand. He knew her personally and was a strong and long-time devotee. He really believed her pile of garbage. He was always uncomfortable with being a central banker.<BR/><BR/>THAT is why he doesn't understand what happened. He is shocked, shocked, that "hands off" turned out to be wrong.The Law Talking Guyhttps://www.blogger.com/profile/17886791396468512490noreply@blogger.com