Friday, October 24, 2008

Greenspan Grilled

Just yesterday, in congressional testimony given in front of the House Committee on Oversight and Government Reform, Alan Greenspan admitted that there were flaws in his decision-making that may have contributed to the current financial crisis. No kidding!

The NY Times described Mr. Greenspan's experience as "one of the harshest grillings of his life."

In fact, Greenspan is not new to such grillings. He endured another memorable one in 2003, at the hands of Sen. Bernie Sanders of Vermont. Watch.

Most notably in that clip, Sen. Sanders gave voice to the frustration that most of us feel when the Chairman of the Federal Reserve, Greenspan or any other, tells us that economic indicators are on the uptick and yet we see no measurable positive impact in our daily lives. That is not, as we know now, because we are too unsophisticated to understand the nuances of the world of high finance. It's because the economic indicators people like Greenspan use to determine the health of the economy have little or nothing to do with the lives of ordinary people, in ordinary circumstances.

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