Greenspan Admits Flaw in Ideology

well where do you think you've made a mistake then I made a mistake in presuming that the self-interest of organizations specifically banks and others were such is that they were best capable of protecting their own shareholders the question I have for you is you had an ideology you had a belief that that free competitive and this is your statement I do have an ideology my judgment is that free competitive markets are by far the unrivaled way to organize economies we've tried regulation none meaningfully work that was your quote you had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis you were advised to do so by many others and now our whole economy is paying its price do you feel that your ideology push you to make decisions that you wish you had not made well remember that what an odd ideology is it's a conceptual framework with the way people deal with reality everyone has one you have to to exist you need an ideology the question is whether it is accurate or not and what I'm saying to you is yes I found a flaw I don't know how significant or permanent it is but I've been very distressed by that fact but if I may may I just finish an answer to the question you found a flaw in their already more in the model that I perceived is the critical functioning structure that defines how the world works so to speak in other words you found that your your view of the world your ideology was not right it was not one precisely that's precisely the reason I was shocked because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well after almost two decades of public service he realizes that the economic philosophy that he had pushed so hard resisting regulation of derivatives he realized that there was some fundamental flaws in that whole philosophy

  1. Don't like Greenspan at all but it takes a lot of balls, honesty and self-criticism to admit in front of the entire nation that his ideology and basically his life's work was wrong. Gave me some newfound respect for him since people, especially politicians, never recognize or chose to learn from their mistakes

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