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Greenspan Still Doesn't Get It

Tyler Durden's picture


Submitted by Tomas Salamanca via the Ludwig von Mises Institute of Canada,

Until recently, Alan Greenspan’s main argument to exonerate himself of responsibility for the 2007-2009 financial crisis has consisted in the claim that strong Asian demand for US treasury bonds kept interest rates on mortgages unusually low. Though he has not given up on this defense,  he is now emphasizing a different tack, as manifest in an article published in the current issue of Foreign Affairs. The article captures key themes elaborated in his latest book on the problem of forecasting, The Map and the Territory. His new tack is no better than the old tack.

Reprising what has lately become a very common refrain in financial commentary, Greenspan points the finger at the emotional side of human nature. This is the side where behavioral economics has recently made a name for itself in formulating its accounts of investor behaviour. Actually, this approach has a much older provenance, most famously conveyed in Keynes’ invocation of “animal spirits” in the General Theory of Employment, Interest, and Money.  On the Keynesian view that behavioral economics adopts, investors do not buy and sell securities by rationally processing all available information and calculating expected returns. Rather, their decision making is distorted by cognitive biases and swayed by the oscillating passions of fear and hope.

In Greenspan’s rendering of the “animal spirits”, investors swing between phases of risk loving and aversion. Greenspan also maintains that “animal spirits” show themselves in herd behaviour. Inasmuch as investors take their cues from others, they tend to be either risk loving, or risk averse, all at the same time.  You know where all this is going with respect to the financial crisis. According to Greenspan, the herd on Wall Street bought up mortgage backed securities while underestimating their risks, and then as soon as those risks became all too clear, everyone headed to the exits simultaneously.

No doubt, an understanding of human psychology is helpful in making sense of economic phenomena. But we have to be precise in distinguishing the role of psychology in economics. As Mises argued, economics is a deductive science. All its conclusions ultimately proceed from the axiom that human beings act by choosing between alternative means to realize their subjective ends. All the psychology that economics needs is the rather obvious proposition that an overriding goal of human beings is the quest to attain a more favorable state of affairs in their lives. Only when the attempt is made to illustrate the operation of economic principles in the real world, as happens when one is engaged in the writing of economic history,  does psychology become illuminating. A psychological analysis might, for example, tell us what goals a particular individual or group are pursuing as well as the degree to which they prioritize considerations of the present over those of the future. Psychology can help economists tell richer stories; it cannot help them derive better economic theories.

Still, this is not the most significant of Greenspan’s errors. Yes, very few people are truly independent thinkers. Not being confident in any opinion unless it is socially confirmed somehow, people are inclined to think as others around them do.  And so, yes, this means human beings are subject to herding behaviour. Yet in order for a herd to develop in favor of some opinion, such as that sub-prime mortgage securities are a great investment, that opinion must initially gain traction. This is what Greenspan’s account is missing. He seems to think that investor herds come out of nowhere, mysteriously emerging more often than would be expected from a bell curve distribution of asset price changes. How, in other words, did sub-prime mortgage trend higher in the first place so as to generate all the enthusiasm it subsequently attracted?

The answer, of course, involves the loose monetary policy that Greenspan himself ran in the 2000′s as chairman of the Federal Reserve. By injecting so much money into the financial system, he supplied market participants with the means of raising the demand for financial assets. By greatly reducing the yields on low risk government bonds, Greenspan shifted that demand towards higher risk mortgage securities offering more appealing rates of return. Yield spreads narrowed between private sector and government bonds. Concomitantly, there was a steady upward movement in the prices of mortgage bonds, which the “animal spirits” then exacerbated through investor herding.

So if Greenspan hadn’t run an easy money policy in the first place, there would have been nothing in the mortgage arena for the “animal spirits” to have latched onto. This is always the case with financial asset bubbles. Excess hope only comes into play after the central bank has set the boom in motion. Excess fear is the inevitable follow-up once the bubble is popped.

Ironically enough, we can appeal to psychology to explain why Greenspan is unable to recognize this point. Human beings are strongly inclined to maintain their self-esteem. Admitting your own complicity in one of history’s greatest financial crises goes against that fundamental drive. Greenspan would be well advised to apply psychology not just to others, but to himself.


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Sun, 11/24/2013 - 18:43 | 4186361 tsx500
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Sun, 11/24/2013 - 18:45 | 4186365 max2205
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Sun, 11/24/2013 - 18:58 | 4186388 ZerOhead
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Sun, 11/24/2013 - 19:06 | 4186408 Stackers
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Sun, 11/24/2013 - 19:13 | 4186412 Pinto Currency
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When you rig the price of gold and CPI figures, the monetary warning systems are shut down and you get the "great moderation" and artificially low interest rates and bubbles.  Ask Bob Rubin and Larry Summers.


"Central banks stand ready to lease gold" - Greenspan participated.


The 'crazy people' stuff is just Greenspan's latest excuse.

Sun, 11/24/2013 - 19:16 | 4186424 James_Cole
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Psychology can help economists tell richer stories; it cannot help them derive better economic theories.

Of course it can.

The answer, of course, involves the loose monetary policy that Greenspan himself ran in the 2000?s as chairman of the Federal Reserve.

2000's? Try Volcker, entering the 80s. Or the big put himself right after.

Greenspan knew what was going on in the 70s, 80s, 90s, and 00s. That's why he has ZERO credibility.

It's washed under the rug a bit now, but the financial industry worshipped the guy too.

Sun, 11/24/2013 - 19:19 | 4186437 SMG
SMG's picture

Exactly.  It's not that he doesn't get it, it's that he is a traitor who conspired to destroy his country.

Sun, 11/24/2013 - 19:53 | 4186499 Pseudo Anonym
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...conspired to destroy his country.

he didnt destroy israel.  he destroyed usa,  a country that is not his.

Sun, 11/24/2013 - 19:56 | 4186510 SMG
SMG's picture

No his "country" is the Luciferian NWO.

Mon, 11/25/2013 - 03:27 | 4187145 Harlequin001
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'According to Greenspan, the herd on Wall Street bought up mortgage backed securities while underestimating their risks, and then as soon as those risks became all too clear, everyone headed to the exits simultaneously'

'According to Greenspan, the herd on Wall Street bought up mortgage backed securities while underestimating their risks, and then as soon as Bernanke raised rates to 5.25% which was higher than the return on medium term notes, everyone was forced to head to the exits simultaneously'

Let's at least try and record this accurately shall we. This was a central bank induced crisis.

Sun, 11/24/2013 - 20:54 | 4186621 booboo
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"According to Greenspan, the herd on Wall Street bought up mortgage backed securities while underestimating their risks, and then as soon as those risks became all too clear, everyone headed to the exits simultaneously."

Fortunes were made by applying due diligence and by not buying into what the rating agencies were calling AAA. Those rating agencies would reside in the dust bin of history if we lived in a just world. Greenspan should be relegated to blabbering fool status. If his name was Alan Green he would be working for Sam's Cans sucking out port o johns.

Sun, 11/24/2013 - 19:25 | 4186448 starfcker
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greenspan's big idea (if it was his and not bob rubin's) was that we could send our incomes to asia, and replace them with credit for awhile. eventually, demand from asia would be so insatiable that it would pull us up, and back to life. hasn't worked out that way. trickle down doesn't work in a state economy. may work for awhile, but sooner or later you get to.... here

Sun, 11/24/2013 - 19:47 | 4186485 The Limerick King
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Greenspan is losing his mind

This moron was deaf, dumb, and blind

This speaker of bile

Is now in denial

And history will not be kind...

Sun, 11/24/2013 - 19:17 | 4186432 NIHILIST CIPHER

A SLOW AND PAINFUL DEATH ..............................clearly it was a case of DOUCHEBAGGERY.                 

Sun, 11/24/2013 - 22:01 | 4186732 Double.Eagle.Gold
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Sun, 11/24/2013 - 22:03 | 4186735 Double.Eagle.Gold
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Sun, 11/24/2013 - 18:44 | 4186362 Seize Mars
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Oh he gets it alright.

He's a liar and a thief.

The good news is that he will be forgotten.

Sun, 11/24/2013 - 18:55 | 4186380 Son of Captain Nemo
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I beg to differ.  A.G. won't be forgotten.

Just like the damage he was instrumental in architecting around one of the most important and influential economies in the World won't be forgotten either.

Sun, 11/24/2013 - 18:58 | 4186389 Theta_Burn
Theta_Burn's picture

Lets hope he finally fades away, I suspect his book is the only reason, were forced to re- live his yidderish...

Sun, 11/24/2013 - 19:18 | 4186435 aVileRat
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Pal Al, definitly gets it. He has already admitted on the record more than once that in hindsight he fully understands just what sort of chaos he brought via lax monetary oversight, and the path to least resistance (and greatest promotes) twice! Dotcom, Subprime, Liebor are all his to own. Dotcom2 will be just another proof that monetary policy is not to be used to offset failures in social (progressive) and fiscal policy.

What likely scares him shitless is the same thing that upsets Hillary to NOT run. Who will take the blame for when the system finally gives out ? If we use history as our guide, the Romanov's were punished for Ivan's stupidity. The first British royal family were offed by Cromwell for Henry's insanity, The family of Auturk were punished for their meddling in British foreign policy. Julius' family was wiped out following the Putch at the Senate all the way out to his second-removed cousins. Noticing a trend ?

The world will not go after them. The next generation of oligarchs & power brokers will hit them what they fear most. Their children and legacy. If the Russian oligarch's who climbed out of the USSR are anything to go by, I would be praying every day the reflexive shock beyond-2018 does not give rise to a US/UK analog or worse, pisses off one of the Chinese oligarchs who are 100% leveraged to the deflation.


Sun, 11/24/2013 - 20:58 | 4186626 GoldenTool
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Makes me wonder if there isn't someone/group above the rulers who punishes failure very harshly.  Middle management not as fun as expected.

Sun, 11/24/2013 - 21:09 | 4186648 willwork4food
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Makes me wonder if there isn't someone/group above the rulers who punishes failure very harshly.

Yes there is.




Sun, 11/24/2013 - 21:35 | 4186686 GoldenTool
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What the heck is thats supposed to be?

Mon, 11/25/2013 - 00:01 | 4186945 scrappy
scrappy's picture

Awesome post aVileRat.

Just looking at Engish History last night.

My wifes clan was at the battle of hastings 1066.

I followed the history and came upon what you speak of.

Good show, old chap showing the truth!

Funny how it all relates through time...



Sun, 11/24/2013 - 18:48 | 4186371 Joebloinvestor
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Oh, c'mon this from the guy who thought markets would be self regulating.

Sun, 11/24/2013 - 18:56 | 4186382 U4 eee aaa
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Probably why he panicked every time they tried

Sun, 11/24/2013 - 18:53 | 4186375 Theta_Burn
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Why is this old horse still being beaten?

Is any article about Greenspan worthy of a sunday primetime slot at ZH?

Fuck, what about Mike Tyson, Al Sharpton, Gary Busey? turn the page already...

Sun, 11/24/2013 - 18:52 | 4186376 starman
starman's picture

That fucktard is still alive?

Sun, 11/24/2013 - 19:06 | 4186406 ZerOhead
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Here's your chance Sparky... see above ^^^^

Sun, 11/24/2013 - 19:28 | 4186452 BandGap
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Hanging around to watch his handy work.

Sun, 11/24/2013 - 21:05 | 4186641 Vendetta
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He did everything he could to ruin the US economy but wanted to be conveniently out of the chairman seat when it died.

Sun, 11/24/2013 - 18:57 | 4186381 JustObserving
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The original criminal, corrupt, crony-capitalist who stole from the 99% to enrich the 1%.  He should be in jail instead of making millions helping Bill Gross make billions. 

Sun, 11/24/2013 - 18:57 | 4186387 lailapa
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Where is the tomb of Alexander the Great ?

The biggest secrets in the world are best hidden when they are in plain view


Authored by Panagiotis Traianou

Sun, 11/24/2013 - 18:59 | 4186391 W74
W74's picture

Speaking of foreign appitite for US treasuries...if China stops buying that means interest rates skyrocket?  I wish I was more of a bond guy.

Sun, 11/24/2013 - 19:36 | 4186454 zhandax
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No, if Banana Ben stops buying rates skyrocket.  The 10 year almost hit 3% from his threat to buy a little less.

Sun, 11/24/2013 - 19:00 | 4186393 samsara
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Maybe CNN can have their crack investigative reporter Andrea Mitchell to do an "Under Cover" expose of Mr. Magoo.

She already has the sordid photographs

Sun, 11/24/2013 - 20:43 | 4186603 toys for tits
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Thanks for the mental picture ... I now want to gouge my brain out.

Sun, 11/24/2013 - 20:50 | 4186615 fonzannoon
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hey Toys, do you still post on here frequently? I feel like I rarely see you on here. You throw a good mix of stuff out on here. It's good to see you.

Sun, 11/24/2013 - 21:17 | 4186663 samsara
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Everybody realizes that Andrea Mitchell is Mrs, Magoo Right?

Mon, 11/25/2013 - 00:54 | 4187040 A Nanny Moose
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Yeah, but I am still trying to figure out...why!? Why would Anrdrea marry a California raisin? Who had the dirt on them both?

Sun, 11/24/2013 - 19:09 | 4186411 razorthin
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Bullshit.  The bottom line is that this "time is..." ALWAYS "different" until proven otherwise.  What makes this time really different is the unprecedented stranglehold on nominal interest rates.  Of course this doesn't mean that the outcome or resolution will be different but, Jesus, we don't have any historical reference.

Sun, 11/24/2013 - 19:13 | 4186425 Stuck on Zero
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This is a man who was in the bully pulpit and could have kept animal spirits well contained. He did not.  He fed the animal spirits with the ferocity of the printing presses and has destroyed millions of lives in the bargain.  He's slime.


Sun, 11/24/2013 - 22:16 | 4186755 BeanusCountus
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Obviously can't remember a consistent train of thought. Blaming psychology (Austrians theory) for the failure of the Keynes theory which pays it little attention. I think he should be in a home somewhere.

Mon, 11/25/2013 - 01:40 | 4187078 TheReplacement
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He obviously understands that millions of people acting in concert are cause and influence compared to one guy with printing press.  Obviously it was the millions of individuals who were all irrational at the same times and in the same directions, as in plural, as in the great unwashed "they" doing the great unwashed things they do, in unison, over and over.  Just look at the odds of it.  That's why he was a top line economist.  We should be ever so humble.

It's either that or he's a all the worst things people are sayng.  Just look at the odds of it.  Why was he a top line economist?  We were ever so humble.

Sun, 11/24/2013 - 19:18 | 4186436 GeorgeHayduke
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Big Al gets it. He and his wealthy and powerful buddies are well taken care of and set for anything that comes their way. Everyone what, they don't matter to him and his buddies.

Sun, 11/24/2013 - 19:22 | 4186443 Oldwood
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One can't help but wonder if any of these people will ever admit to being wrong on anything. Its not even that I want the admission or an apology, but because they can admit no wrong they always try to fix their fuckups by burying it in more of the same shit.

Sun, 11/24/2013 - 19:33 | 4186462 BandGap
BandGap's picture

Stop wondering, the answer is no.

Try this on for size - what if they mean to do this.

I vaccillate between the two myself.

Sun, 11/24/2013 - 19:30 | 4186456 surf0766
surf0766's picture

He will never admit he gets it

Sun, 11/24/2013 - 19:50 | 4186496 q99x2
q99x2's picture

Why is he not in prison?

Sun, 11/24/2013 - 19:55 | 4186508 ZerOhead
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Because Obama

Sun, 11/24/2013 - 20:02 | 4186521 ShrNfr
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Why isn't Obama in prison?

Sun, 11/24/2013 - 21:09 | 4186651 Vendetta
Vendetta's picture

Because they are all on the same team and the American people are not.  The next president will want to 'look forward' as they all do like none of the negligence and crimes of the past president matter.

Sun, 11/24/2013 - 21:38 | 4186690 Pure Evil
Pure Evil's picture

Of course the crimes of the past don't matter. Your team is now in place. Let the rape and pillaging begin.

The only reason Hillary wants a go at it is because there's still some things in the White House they didn't have time to steal the last time they were there.

Sun, 11/24/2013 - 20:14 | 4186540 ShrNfr
ShrNfr's picture


Sun, 11/24/2013 - 20:48 | 4186612 zhandax
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Damn, I thought it was too cold for crickets.

Sun, 11/24/2013 - 19:54 | 4186504 Quinvarius
Quinvarius's picture

I think what he is saying that the Central Bank tricks people into making decisions that appear ridiculous in hindsight.  A few years down the line, without context of hype and lies, it looks like people were behaving irrationally.  In reality, they were just taking the Fed's advice at the time. 

Sun, 11/24/2013 - 20:01 | 4186519 ShrNfr
ShrNfr's picture

Let's just face it. Ol' NoBrains is just plain old tacky.

Sun, 11/24/2013 - 20:03 | 4186520 MedicalQuack
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Here's a good essay to read...On Being a Data Skeptic, written by former Summers applies to Greenspan as well, sniff the data and never sniffed a thing and basically what we have seen is really what a good salesman Bob Rubin was...

I added the PBS documentary, "The Warning" to my Algo Duping page too which is all about Greenspan, Summers and Rubin and Greenspan having to admit he was wrong...biggest dupee in  US History..just scroll down past the other good videos I put in the collection, just trying to put relative videos in one spot to make it easier to find the wisdom of the folks far smarter than me.

Sun, 11/24/2013 - 20:12 | 4186539 slaughterer
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Nice site, MQ

Sun, 11/24/2013 - 20:18 | 4186546 nakki
nakki's picture

Psychopaths never admit they're wrong. That's why they're psychopaths. Of course when you realize evrthing you've ever done in your life is bullshit and soon you'll die, you lie to yourself, (and who ever else will listen) pretending that what you did was right. Just wait till Ben "the quivering lip" Bernanke has to answer for being the butt boy of the families that own the world. Can't wait to see that.  Maybe he'll just eat a rod, don't think he's half the psycho that the maestro is.

Sun, 11/24/2013 - 20:23 | 4186561 besnook
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i think the biggest irony of the greenspan era of the fed is his incessant warning to congress that there may come a time when no one wants to buy usa debt so they must get the usa fiscal house in order. in other words, he was pre-blaming congress for the future crash because of their irresponsible budget behavior. of course, we now know it was the private sector banks' irresponsible money handling that has now led to investor lack of interest(lol) in bonds that has to be made up by hte fed asset purchases to prevent collapse of the system.

greenspan's response to the bubble burst that he did not understand why a bank would purposely jeopardize their business flies in the face of what is known about fiat money(which he knows from his gold is good years). unbridled self interest leads to self destruction is the great flaw in economic theory. all fiat systems fail because self interest leads to money printing by the owner of the printing press. the solution to the present collapse of the fiat regime is to print more paper, totally insane. printing money got us here. printing more money will get us out of it. that is the policy of a two year old with regard to an untended bag of candy.

Sun, 11/24/2013 - 20:38 | 4186587 Ned Zeppelin
Ned Zeppelin's picture

The best possible scenario is that Greenspan is only a self-absorbed fool, who embarked on a bizzare tear of money-printing because the timing made it politically expedient to do so and it made him seem a greater man than he was.

The worst is that he knew full well what he was doing, and that his successors have continued and will continue these actions as part of a deliberate scheme to enrich the .01%.

Good intentioned, but incredibly misguided, or malevolent. Take your pick. The latter seems more likely as his successors have continued the game.

The next American revolution. On the way.

Sun, 11/24/2013 - 21:50 | 4186718 Ropingdown
Ropingdown's picture

Greenspan's complicity was not merely (or even mainly) in the printing of money.  It lay instead in his failure to use his regulatory power to intervene as mortgage standards fell and risk sky-rocketed.  The episode is indicative of the Fed's inability to actually regulate the banking industry, because it has compromised loyalties.  Much of the regulatory power should be split off to separate independent agency.

Mon, 11/25/2013 - 10:09 | 4187510 Flakmeister
Flakmeister's picture

To cut a long story short, this is what you get when you have a Ayn Rand acolyte with a firm belive that markets are self regulating in charge of monetary policy....

Sun, 11/24/2013 - 20:39 | 4186590 nakki
nakki's picture

I think the reality of the situation is this. The families that own the world could care less where the stock market ends up when it implodes. They'll actually be better of if they survive when everthing resets, cause they'll own it all. Doesn't matter in fiat terms where anything is valued if you own everything. New fiat no competition rinse repeat.

Sun, 11/24/2013 - 20:55 | 4186623 W74
W74's picture

Quick, run over to Amazon and give Alan's book a scathing review.  People do trust reviews and if all he has are one and two star reviews I think we can put a serious dent in the sales of this garbage.  Internet activism go!!!

Sun, 11/24/2013 - 20:58 | 4186625 Pumpkin
Pumpkin's picture

It amazes me how many dumb asses in this world can see an evil genius and mistake him for an incompetent idiot.  WHO'S FUCKING WINNING HERE?

Sun, 11/24/2013 - 22:54 | 4186839 WTFUD
WTFUD's picture

@ pumpkin
I can agree with your sentiment ' evil ' but scoff at 'genius' in reference to the woody allen's retarded uncle lookalike aka greenspam.
The twisted evil cunt had 200+ Phd's at his disposal and took the easy option, with a golden handshake from his mob bosses, just as Geithner and bernanke did.

Sun, 11/24/2013 - 22:27 | 4186770 ebworthen
ebworthen's picture

Central banks create crises; they do not prevent them.

A delusional PhD who spent their entire life wworking for a corrupt illegal institution using a jumble of useless theoretical hokum will not in his or her lifetime admit error.

Sun, 11/24/2013 - 22:30 | 4186779 Downtoolong
Downtoolong's picture

I’m waiting for the Greenspan book titled, “I just realized all my other books were bullshit”, and subtitled, “No, I’m not giving you your money back”.

I bet it would outsell all the others combined.

Sun, 11/24/2013 - 22:44 | 4186809 BeagleOne
BeagleOne's picture

It's too bad that he isn't an individual who after being wrong commited suicide for the greater good. Oh, I forgot, the tribe is exempt from accountability and not subject to the guillotine.

Mon, 11/25/2013 - 00:07 | 4186983 Seal
Seal's picture

I don't know why anyone even gives him coverage. Greenscum has been functionally senile since about 1996, probably had a infarction then or something. His probelm has been HIS AGE, like Feinstein. still doing damage in their late 70's and 80's!

Mon, 11/25/2013 - 00:41 | 4187029 disabledvet
disabledvet's picture

Alan Greenspan wasn't running Bear Stearns or lying about the balance sheet ala Lehman Brothers. Unfortunately Alan Greenspan hasn't manned up against The Brotherhood and blamed Wall Street for feeding him a line of b.s. This site exists because the math involved was so ridiculously "out there" on Planet Finance only a Spaceman couldn't see it coming "because he was literally wearing the math suit." The Fed...and Wall Street never ONCE uttered the word "risk" in the "roll in" to 2008 (other than "to take more.") Sauce for the Goose Mr. Savik. While never popular i have always said the response(s) to the "financial weapon of mass destruction" was (were) mostly spot on...including QE. But i think we've gone full on Japan now...those low yields say the program is having the opposite of its intended effect...and "we're" now hooked on the "juice." I do not believe exit is a big deal...not pain free...but not a big deal either. Having said that there are a lot of Federal Programs being unwound here (the ACA being only the latest) and clearly we're going to get more QE at least until next year. The problem is one of deflation...and continued QE only makes it worse. The Bush Family has sent a message by buying 125,000 acres in Paraguay..."Don't Cry for Me Argentina" comes to mind. Having said that we have been building vertical feet in the USA for quite some time now. "nothing says energy efficiency like a Skyscraper." And it's not like Washington DC is lacking in all electric transportation for the public either. Default is not the "risk on the table" but the risk all of us have already been a witness to. When interest rates are this low the problem is with the markets not "prices." Will the dollar collapse on Monday? Possibly. Is bitcoin a way to buy inflation protection? yes. But the risk is the reach for yield and the problem of top line growth. QE never put recovery on the table. In other words "taxpayers pay for everything...not the Fed." The only new one i see is Wall Street...ironically enough. Waiting for unemployment to get to a certain level? REALLY? EMPLOYMENT must start rising and pricing power FOR PRIVATE SECTOR LABOR must be realized for growth to return and the "lending spigots unleashed." Until then it's all about the "public sector unions" and "Talking Up Jack's Beanstalk." Equity prices can front run a almost every case Post World War II this has been the case...and i believe this "approach" to be very similar "in idea" to "how to achieve a normal post War recovery." But you must have recovery at some point too. I imagine it is pretty tempting to monkey hammer that dollar though. Would be an odd response to "Not Going Into Syria" though.

Mon, 11/25/2013 - 02:41 | 4187118 Joe A
Joe A's picture

This is an insult to animals!

Animals call when some animals go crazy and kill not for food: "human spirit".

Economist pride themselves over economics being the most rational and logical of all the social sciences. And then....they leave everything up to the "market" which is fueled by greed, supersticion, egoism, etc. (aka "the human spirit")

Mon, 11/25/2013 - 03:16 | 4187137 tradewithdave
tradewithdave's picture

Greenspan's excuse is clearly expressed in his book in that pre-Ricardian contract "the map" is distinct from the territory and in a post-blockchain era the map IS the territory expressed as "the receipt is the transaction."

The move from double-entry to triple-entry accounting via the addition to the debit and credit of the prebit changed everything and he knows it. It's the end of the "nobody could have seen this coming" era.

Mon, 11/25/2013 - 04:06 | 4187172 runforthehills
runforthehills's picture

I haven't looked at the content but find it weird to notice that Greenspan could not even find an original title for his book ("The map and the territory" is the title of a novel written a few years ago by French author Michel Houellebecq..)

Mon, 11/25/2013 - 07:50 | 4187262 Jimbobo
Jimbobo's picture

Why waste time discussing this tool? He did what whoever rules the world wanted of him at the helm of the FED, got filthy rich, doesn't give a single fuck about what it all meant for the economies of the world and slaps people in the face with his wrinkled dick by coming out with a book and interviews. Get rid of green$pan stories!

Mon, 11/25/2013 - 08:25 | 4187297 hoist the bs flag
hoist the bs flag's picture

Don't be fooled ...Greenscam "gets it"...


Mon, 11/25/2013 - 08:58 | 4187338 Sandmann
Sandmann's picture

Greenspan has long been senile. It is one of the wonders of the US system that a celebrated shill like Greenspan could be hoisted into the seat at the Fed to initiate an unbroken chain of Jewish chairmen for 26 years pursuing policies to the benefit of Wall Street with the costs borne by Main Street. It is remarkable how inadequate the candidate pool has been in recent years that a senile old man like Greenspan should be Chairman of the Fed for 19 of its 93 years existence.



Mon, 11/25/2013 - 10:51 | 4187649 tradingdaze
tradingdaze's picture

Not stupid. Just another liar.

Yellin says stock are not in a bubble. Just another liar.

Bernanke, just another liar.


Mon, 11/25/2013 - 11:49 | 4187815 dadichris
dadichris's picture

he had one job - make the banksters richer - mission accomplished

Mon, 11/25/2013 - 16:07 | 4188604 slackrabbit
slackrabbit's picture

<Banker> OK greenie Blow


(ever wondered why he's stil 'drooling'....)

Mon, 11/25/2013 - 13:01 | 4188051 moneybots
moneybots's picture

Greenspan gets it.  That is why he is lying.

Mon, 11/25/2013 - 20:01 | 4189260 Pike Bishop
Pike Bishop's picture

But "emotions" don't fit in his Randroid philosophy.

Free Markets are the cold-hearted hosts to perfect price discovery. Because the unreality of emotions, always gets crushed by the reality of the aggregate of rational self-interest.

And Bank CEOs would never do anything which is illegal, or could destroy the company and shareholder value. It's against their self-interest.

Well, unless making-up assets out of air, and leveraging everything out the ass... fulfills the rational self-interest of bigger bonuses.

Greenspan's ideology and Religion through Math, are so trashed and burned, he has to work 24/7 making up excuses for his entire existence.

The more "reasons' he comes up with, the more pathetic he looks.

Stay down, Al. Stay down.

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