According to an article printed last month in the New York Times (click here) , former Federal Reserve Chairman Alan Greenspan basically ignored warnings that the housing market was about to collapse and transform the recent economic boom into a national nightmare of epic proportions.
Alan Greenspan, former Fed chairman
and deluded Ayn Rand devotee
According to the article, one of the men who tried to warn our misguided and delusional former Fed chairman, Edward Gramlich, was repeatedly ignored and rebuffed by Greenspan. He wasn’t the only one, either. Greenspan was repeatedly warned by a variety of lending groups and housing advocates that a “new breed of lenders” was applying unscrupulous and dishonest practices in order to lure consumers into expensive and dangerous loans they couldn’t afford.
A.G. ignored all of them.
So, my question is this: He knew this disaster was imminent, and as a professional economist, he had to know what the potential consequences would be. So why is Greenspan walking around free and writing lengthy tomes blaming everyone but himself for the debacle instead of answering uncomfortable questions in front of a grand jury? Why is he still a free man? At best, his conduct was criminally negligent. At worst, it was a complete betrayal of the best interests of the country.
Greenspan’s negligence and stupidity have brought upon us the worst economic disaster since the S&L crisis of the Bush I years. It’s time he answered the tough questions instead of blaming others for the disaster perpetuated by his inaction.