Greenspan, Henry Waxman, Semin discussed on Capital Ideas Investing Podcast - Alan Greenspan: The Man Who Knew

Automatic TRANSCRIPT

But when you take that paradox that ironies you describe what then accounts in your view for you know as you chronicled the end greenspan after being celebrated as the you know part of the committee to save the world and the most celebrated economic policymaker of this era and then after two thousand eight you know there's a kind of tarnishing of his reputation in this kind of famous hearing where henry waxman the congressional up democrat kind of confront semin green greenspan admits there was a kind of a flaw in his reasoning talk about it remind folks that but then also reckitt what was it that he felt constrained by enduring are already think about the politics of managing acid bulbs or the institutional constraints he felt sure well there was a famous hearing just as you say right after the two thousand eight mcgruther's collapse greenspan was called in to the congress and henry waxman was crossexamining him in a rather aggressive very skilful way and greenspan says at one point i found a flow i found a floor my wills you'd my ideology i've i realized that i was wrong and of course people seized upon this confession i mean there's a documentary called the floor which starts with greenspan making his confession there is near that was a headline in the financial times it was all over the place and this appeared to vindicate the idea that greenspan had admitted that he thought financial companies were look after their and risks they would not take too much leverage because they with low themselves up and so he was believed that finances can be trusted to be safe and now you realize after liman that was a mistake.

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