Showing posts with label Greenspan. Show all posts
Showing posts with label Greenspan. Show all posts

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.