Greenspan Admits He "Knew There Was A Bubble" In 2008", But Refuses To Apologize

Tyler Durden's picture

Alan Greenspan is out pitching his news book. We explained the miracle of revisionist history and questioned the sanity of anyone buying this 'guide to economic forecasting' earlier in the week, but in his appearance this morning on CNBC, the "maestro" did a great job explaining just how flawed his own logic was (without our help).

Flip-flopping from some rational efficient market based economic prognostication to the human nature based entirely non-random cyclical and feedback-loop engaging reality, he explains (sadly reflective of the current clairvoyance of Jim Bullard) that, speaking for himself and his FOMC colleagues, "all of us knew there was a bubble," though failing to admit to being the progenitor, "but we badly missed the timing."

Perhaps summing up the mantra of his ilk better than any other sentence, Greenspan concludes, "a bubble in and of itself does not give you a crisis..."adding, during a later Bloomberg TV clip, "I missed certain forecasts, you don’t apologize for that. Do you? I don’t. We are not omniscient. I am a human being."


Perhaps not, but with every muppet leveraged to the tick on the Russell 2000, we suspect he'll reject that thesis once again in the future...

Must watch (brief clip) for insight into just how sociopathic our central bankers have become..



Doing the rounds, Greenspan later dropped this little beauty on Bloomberg TV...



“I am in the business where, Harry Truman once said, ‘If you can’t stand the heat, get out of the kitchen’… I apologize for something I did wrong, and I do apologize. I don’t apologize…I was doing the best I can.


The arguments, some of which are quite accurate is I missed certain forecasts, you don’t apologize for that. Do you? I don’t. We are not omniscient. I am a human being. I cannot see beyond the horizon any more than anyone else can.


Now to apologize for not being Superman, I just refuse to do that because that never entered my mind."


Perhaps some 'honesty' like that during your reign would have helped temper the bubbles you created...

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fonzannoon's picture

Why does that rotting pumpkin head still get TV time?

FL_Conservative's picture

"Guide to Economic Forecasting?"


I thought it was "Guide to Economic Whorecasting".   I'll pass!  Thanks!!

jbvtme's picture

"i'm just a human being"?  lying fucking lizard

Stackers's picture

"a bubble in and of itself does not give you a crisis..."


yeah, and its not the fall that kills you ...................

Pladizow's picture

"I took a shit on you America, and I will not appologize!"

Dareconomics's picture

Ultimately, his hubris is believing that he could manage the world financial system by manipulating interest rates for two decades without any consequences is what caused the GFC. He may not know who is responsible for the GFC, but history surely will.

TruthInSunshine's picture

We are living in the days of the biggest, multi asset class bubble that anyone under the age of 85 has ever lkved through (only the roaring '20s bubble was comparable & ARGUABLY - though not certainly - bigger).

From equities to bonds to residential real estate & more, central banks around the world have collaborated to implement that failure guaranteed remedy of CTRL+P, and with reckless abandon, to temporarily inflate numbers on ledger sheets the world over.

Now, the real economy is so divorced from the fractional reserve mark-to-electronic-fiat economy, an inevitable & extremely large bust is 100% guaranteed.

As in such times before, the only questions are when the big pop! is heard & what the precise catalyst for the big pop! will be.


"When men are entrusted with the power to control the money supply, they will eventually use that power to confiscate the wealth of their neighbors."

"There is no better illustration of that law than the Crash of 1929 and the lingering depression that followed."

"During the nine years before the crash of 1929, the Federal Reserve was responsible for a massive expansion of the money supply. A primary motive for that policy was to assist the government of Great Britain to pay for its socialist programs which, by then, had drained its treasury."

"By devaluing the dollar and depressing interest rates in America, investors would move their money to England where rates and values were higher. That strategy succeeded in helping Great Britain for a while, but it set in motion the forces that made the stock-market crash inevitable."

smlbizman's picture

give a fulcrum and i will move thee earth....give me free money to leverage and ill get that bitch as high as you want...

and not to nick pick truth, but i think it is cuntrl+p, now

King_of_simpletons's picture

The whole bunch in the Federal Reserve Board know we are screwed. If they come out and admit they were wrong for 6 years, their "fake credibility" ie the credibility which they think they have (the whole world is laughing at us, BTW), will be gone and none of their policy measures will bear any fruit (in their minds, ofcourse).

MagicHandPuppet's picture

If there was an ounce of ethical decency in this man, he would have been the guy that lit himself on fire in D.C.

Anusocracy's picture

Don't let him die a natural death.

Harlequin001's picture

Nonetheless Superman is precisely what central bankers profess to be... is it not?

Perhaps he should just apologise for deliberately misleading everyone into believeing that he actually knew what he was doing. And so should Bernanke and Yellen.

Ghordius's picture

TIS, +1. a small thing "A primary motive for that policy was to assist the government of Great Britain to pay for its socialist programs which, by then, had drained its treasury."

a conservative & biased source? The biggest help all of Europe needed was how to pay for all the lent American war material that gave victory to Britain & France. The British Treasury was primarily paying back for the Great War

methinks the author of the source mistakes the British WWI and the WWII post-war situations. most "socialist" welfare started 1946/48, also "thanks" to Bretton Woods

StychoKiller's picture

Broke from buying scones, or from buying crumpets, either way you're broke!

bubblemania's picture

You have to give him credit for the CNBC interview, he's totally correct in saying that bursting bubbles without leverage have minimal impact on GDP and Main Street. Investors risking their money, not someone elses, is what made this country work. It's the leverage that brings down the whole system - greed - and all the other nasties that go along with it. That fuckwad Bullard knows we have a leveraged bubble that's why they won't taper. They are hoping the market will reign itself in first, hence the back and forth jawboning. This will end badly, but I don't think anytime soon.

SDShack's picture

I up arrowed you for you are correct as far as you went. But the fact is that any Fed Chairman had to know of the insane 40x leveraging that was going on in a huge number of markets, especially the securitization of the mortgage market, and did nothing to curb that other than mouth something about "irrational exhuberance." That makes Greenspan completely complicit in this engineered collapse.

fourchan's picture

unless he didnt know what the system he was in charge of is designed to do.

enslave a country of free peoples to debt created from thin air and capture all assets through boom and bust cycles the system creates.


one day someone will call the fed res system treason for stealing america.

SDShack's picture

Oh he knew. Every banker fits that mold. The proof was how they conspired to repeal Glass-Steagall. The mea culpa he is trying to foster is because signicant minorities of the masses are waking up to the outright debt slavery bankers wrought. The bankers are getting nervous for very good reasons. Sociopaths only fear one thing... their loss of everything. That is why they are on a never ending quest to accumulate more power. Their fear feeds their perception that enough is never enough. They view the masses both as slaves, and threats. They only survive with docile masses. The guillotine theory is what they fear most. That's why they are investing in the NSA, IRS, and DHS. The masses must be controlled for the debt slavery ponzi wealth redistrubtion scheme to work.

fourchan's picture

americans need a final solution for the banking system problem.

putaipan's picture

why does the line "but we badly missed the timing." make me think he only means by a couple of months... and that if their timing had been better we'd already have been living under paulson/biden matrtial law for six years instead of this piss poor limbo shit we've got.

redpill's picture

"I cannot see beyond the horizon any more than anyone else can."

bnbdnb's picture

Wish in one, shit in the other.

Dubaibanker's picture

That video is simply jaw dropping. Thanks.

Greenspan should simply start going to Grade 1 classes and start his life all over again! :) 

SafelyGraze's picture

when a child knocks over a glass, he says "the milk just spilled"

when a child steps on a toy, he says "it just broke"

when a child crushes the pet turtle, he says "it just died"

it requires a certain maturity/humility/honesty to admit that one's personal agency can produce adverse outcomes


texas sandman's picture

"I am a human being"


As a member of the human race, I am offended by that remark.

DeadFred's picture

Do reptilian symbionts claim to be human? Now we know the answer.

Anusocracy's picture

"We are not omniscient. I am a human being. I cannot see beyond the horizon any more than anyone else can."

If that's his way of admitting that the Fed Chairman's guesses are no better than anyone else's, then maybe the selection of the Chairman should be done by lottery.

Or maybe a dart throwing monkey as Fed Chairman. Have they done that yet?

Say What Again's picture

AG is so full of shit!

He stopped all the regulators from doing their job. He crushed Brooksley Born for doing her job, and then called her incompetent!

He was blowing the biggest bubble in history and did NOT know what he was doing.  Now he wants to re-write history.

Bay of Pigs's picture

He is a rotten turncoat son of a bitch. Goldbug and Libertarian?

Yeah right. Not a fuckan chance.

NotApplicable's picture

Oh, he absolutely knew what he was doing. Him and Rubin, both.

To claim that they're incompetent is to provide them the cover that he "wasn't Superman."

Tsunami Wave's picture

I heard him on bloomberg surveillance this morning and Tom Keene was asking the guy why didn't you raise margin requirements and capital requirements before the dot com bubble... And the guy was just too full of bullshit. He said basically after a whole load of hot air that they weren't necessary... Especially since interest rates remained consistent (aka... LOW).... I had to turn it off after that

Kirk2NCC1701's picture

Not to worry... his wife - ANDREA MITCHELL @ CNN -- will help rewrite it.

Wolf Blitzer & Friends will do their part.

slotmouth's picture

Because he is in the club and you aren't.

Divided States of America's picture

well u would know which channel to turn to if you want commentary from slimeballs. But get used to it, the past 30 years of zionist controlled fed wont change much when rotting pumpkin's student goes back to Princeton and J-bitch takes over.

Pooper Popper's picture

greenspan you are a inhuman piece of are a greeeeeaaaaasssy spot that should have been rubbed out a long time ago!

HedgeAccordingly's picture

seems his bloomberg interview was a bit better - 

yrad's picture

He could "forecast" his own jail time better than a housing bubble...

masterinchancery's picture

I vote for termination with extreme prejudice of this lying dweeb.

Jumbotron's picture

Just die already, Ayn Rand cunt licker.

jubber's picture

Surely he could spend the rest of his days in Prison, and any royalties from this fairytale given to the Country

Urban Redneck's picture

He could... but that would probably require a government employee to go online and search cspan or youtube for some video of him testifying to congress where he might have said under oath "he didn't see it coming..." and all that effort w/o getting sidetracked in the interim by the taxpayer funded porn on his other computer monitor... too much to hope for from a .gov

NotApplicable's picture

Actually, no they can't. Greenspin was (and Bernanke is) on the board of the BIS, and thus is immune from prosecution from any legal body on the planet.

Urban Redneck's picture

They weren't testifying before the US Congress as function of their BIS duty... perhaps the US stupidly signed away the right the prosecute in some treaty annex, but at least in Switzerland lying under oath certainly a punishable offense (just not one the offenses that they actually jail bankers for)

El Vaquero's picture

Alan, you look like you are already rotting.  Something tells me that you smell like a cabbage that has been sitting on the counter for a couple of weeks. 

ejmoosa's picture

No, he was doing the best his ego allowed him to do.


One should ALWAYS listen to opposing views, to at least see if they merit consideration.

Those that do not are fools.

Iwanttoknow's picture

Geenshit,fuck off.

ghostfaceinvestah's picture

He should just shut up, nothing he says now will restore his image.  His reputation is shot.

earnyermoney's picture

I wish he'd reach room temperature.