Wednesday, March 30, 2011

Alan Greenspan Back: Warns against Frank-Dodd reform, Longs for Good Old Deregulated Days.

We thought Alan Greenspan had learned his lesson when he engineered the total collapse to the global economy. He even said his free markets theory was flawed, to his shock and horror:

Did Greenspan forget his own words? Whatever it is, isn't it time we stop humoring him? From the Financial Times:
Alan Greenspan, the former Federal Reserve chairman, has attacked the Dodd-Frank financial reforms warning they could create the “largest regulatory-induced market distortion” in the US since the imposition of wage and price controls in 1971. 
The Dodd-Frank legislation was … a “re-regulation” of financial markets after the deregulation championed by Mr. Greenspan in the 1990s. 
According to the Financial Crisis Inquiry Commission report:
“More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve chairman Alan Greenspan and others, supported by successive administrations and Congresses, and actively pushed by the powerful financial industry at every turn, had stripped away key safeguards, which could have helped avoid catastrophe.”
But Greenspan is unrepentant and Republicans in Congress are becoming bolder in readopting the same anti-regulation stance.

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