Does this scare you????

Alan Greenspan said this morning in the senate hearing, that he does not fully understand why the markets crashed.

Greenspan is an old fart. Like McSame. Once you reach a certain age, your brain shrinks ( I am old and I know, what I am talking about)
Scientifically, your brain power starts shrinking at age 39. After that, you do, what you have always done and are stuck your way. Anything new or different coming your way is beyond you.
Greenspan should have been retired 20 years ago. We would be better of today.

Greenspan doesn't work for the government anymore. Which means that he is not making important decisions anymore. And there is no reason to be concerned about his lack of understanding.

He doesn't understand what happened because he is looking only at the theory that people normally behave in their own self-interest. And he doesn't look at how people actually managed to get around this theory in a way that he didn't expect or foresee.

"Greenspan told the House Oversight Committee on Thursday that his belief that banks would be more prudent in their lending practices because of the need to protect their stockholders had proven in the latest crisis to be wrong."
http://ap.google.com/article/ALeqM5jSSJzC1UNusL4eW21xsZ7HJcM8WQD9409R0O4

The thing is that bank managers did behave in their own interests, but only after they've set up the situation in such a way that it became advantageous for them to drive their banks into bankruptcy.

The top executives of all these banks were granting themselves bank shares like crazy as compensation for their work and encouragement to do better. After a while they became large shareholders of their banks. And they've gained complete control over their banks because most other shareholders were passive mutual funds, ETFs, hedge funds and others who didn't use their shareholder voting rights.

Fully in control and without any effective oversight from common shareholders, bank executives proceeded to rob their banks by giving themselves multi-million dollar salaries and bonuses. And to hide all that robbing they've loaned out a lot of money to anybody they could find in order to record these loans as profits and justify their own extraordinary rewards.

The banks are near bankruptcy now. And many top bank executives are now out of their jobs. But they've accumulated in their private accounts hundreds of millions of dollars in many cases. And they are set up for the rest of their lives and for the lives of their descendants far into the future.

For such huge rewards, bankrupting their banks and loosing their jobs was a small price to pay. They really did behave in their own best interests, just as Alan Greenspan had expected. But not in a socially responsible way that he expected them to.

No.
It's been obvious to some for a long time that he didn't understand.
The current state of affairs only proves this, it's unnecessary for him to state the obvious.

No. He is no longer privy to all the info. He kept warning us about the housing bubble, but he didn't take the action necessary to prevent it from busting big.

I don't believe him. They are only making excuses. They knew full well of the risks. He even spoke of them at times.

They were making so much money by taking these huge risks they let it go.

It is the failure and collapse of the Republican "Free Market Self Regulation" and deregulation philosophy and they KNOW IT.

It is only CYA.

well...maybe he said something more than implied confusion in a specific area???

:)

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