Posted by
Andrews on Wednesday, March 11, 2009 4:29:55 PM
At one time Alan Greenspan was a pro-gold opponent of the Federal Reserve. When he took on the job of Fed chairman I had hoped it was a sign that he would be trying to change things from the inside, bringing some sanity to the inherently
unsound policies of managed currency. Unfortunately it appears I was overly optimistic.
With his most recent editorial, it has become obvious Mr. Greenspan was not trying to reform the beast from the inside, but had just sold out.
He starts off with a legitimate question, whether the housing bubble was caused by general monetary policy or
by specific mortgage rates, and
though I think general monetary policy was to blame, I could see
the merits of arguing the CRA and Freddie/Fannie caused the actual crisis. Hwoever, that is not Mr. Greenspan's conclusion.
So, what did this man, who once denounced the Federal Reserve as dangerous and unsound, reach? That it was
the free market which caused the problem. That's right, Greenspan is reviving the arguments of the Wilson administration that boom and bust are inherent in the free market and we need more regulation.
Yes,
MORE regulation. As if the financial,
especially mortgage lending, sector was not regulated enough, Greenpan argues that
"greed" brought on
our problems and we need more government.
If you ever needed proof that exposure to Washington could corrupt anyone, this is it. And we wonder why decent men will not run for public office, this is the answer. Because once decent men attain an office , they cease to be decent men any longer.