Depression Diary

[AVGWarhawk]

From Neal's posted link

"Alan Greenspan was the maestro, and both parties in Washington were united in a belief that the markets would take care of themselves."

Alot in Washington think the entire system will "just take care of itself." More often it does. When it does'nt, time to look for a scape goat.

[Onkel Neal]

Originally Posted by AVGWarhawk

From Neal's posted link



Alot in Washington think the entire system will "just take care of itself." More often it does. When it does'nt, time to look for a scape goat.

Yeah, I'm a free market guy, and the fewer rules, the better. but that doesn't mean zero rules. People cheat and smart people will screw up the system if there is no oversight.

A lot in Washington no longer believe in the market will always fix itself, Greenspan and Gramm among them.

There was clearly the implication that deep government involvement had screwed up the mortgage business, but a couple years ago Gramm (and Alan Greenspan) seemed to think that the magic of modern financial markets would compensate for all that government meddling. Now they don't.