In recent testimony before a congressional committee former Federal Reserve Board Chairman, Alan Greenspan, pointed his finger at various financial insurance schemes and the inescapable uncertainty of the future. “We’re not smart enough as people,” he said. “We just cannot see events that far in advance.”(HT: The Austrian Economists)
The one thing he did not admit was that it was his own monetary policy when he was at the helm of America’s central bank that created the boom that has now resulted in a crash.
Saturday, 8 November 2008
Richard Ebeling on Greenspan
Earlier I noted a piece by George Selgin in which he argued that the Fed under Greenspan was largely responsible for the US housing crisis. Now Richard Ebeling has a piece on the same topic: The Financial Bubble was Created by Central Bank Policy.