The Maestro is back! Alan Greenspan, also known as "The Maestro" had been praised perennially by economists around the world for decades. Today, he made an appearance on the web, reuters news channel, as well as my local newspaper Daily Express on business section page 24. The title, however, was a jolt to me. He publicly declared that "another global financial crisis is inevitable" because "human nature" always reverts to "speculative excesses" during a period of sustained prosperity.
According to the article, Greenspan said financial crises are all different, but they have one fundamental source.
"They human beings begin to take speculative excesses with the consequences that have dotted the history of the globe basically since the beginning of the 18th and 19th century," he said.
"It's human nature: unless somebody can find a way to change human nature we will have another crisis."
After reading this preposterous article, I was flabbergasted, stunned, dumbfounded, angry, and I screamed! How on Earth can Greenspan, the Maestro, foolishly blamed the financial crisis on "human nature"? What is human nature? Does human born with greedy and speculative behavior? It's laughable and certainly beyond absurdity. On the contrary, he was the one that caused everyone in the market dizzy, drunk, and hung over during his terms as chairman in the Federal Reserve. Did he even realize that he was supplying alcohol to everyone by artificially lowering the Fed's interest rate to 1% so that cheap money and easy credit was available to almost everyone that contributed to the housing bubble and the sub-prime mortgages?
"But his record has recently come under harsher scrutiny, with some economic watchers noting it was during Greenspan's tenure at the Fed that the seeds were sown for the housing and easy credit bubble that contributed to the financial crisis."
Indeed, it was exactly Greenspan, who acted like the master of the universe in the past 18 years as the Federal Reserve Chairman caused all these mess. He was the one that pulled the lever in the Fed few understood. He was the one who advocated the loose money policy, and that is, the inflationary monetary policy. Now, he stupidly blamed the crisis on "human nature"? Perhaps he needs to go back to the science class to learn about "what is human nature?" before he starts talking anything about human nature. What a joke!
END THE FED!
Source: Another financial crisis inevitable
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