Thursday, October 9, 2008

Greenspan's legacy

The New York Times has this article on Greenspan's legacy. The focus is on the failure to regulate derivatives. I have to admit that at the time I was on the side of Greenspan, and Rubin and Summers. Like most economists, I just assumed that a government agency headed by a lawyer could not understand the role of a complex financial contract.

Hubris is no substitute for analysis I guess.

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