Posted by: twotrees | December 14, 2008

How the economic crisis happened…

 

 

paulson-and-greenspan1    The January issue of Vanity Fair has several good pieces, including a biopic of William F. Buckley or how Yves Saint Laurent amassed one of the best art collections of the past century.  But the primer of how the current economic collapse developed over the past twenty years is most noteworthy – written by Nobel-laureate economist Joseph Steglitz, it makes a very complicated topic more easily understood in under 2,000 words.  The most intelligible words I’ve ever heard from Greenspan occur during this exchange in the article:

The truth is most of the individual mistakes boil down to just one: a belief that markets are self-adjusting and that the role of government should be minimal. Looking back at that belief during hearings this fall on Capitol Hill, Alan Greenspan said out loud, “I have found a flaw.” Congressman Henry Waxman pushed him, responding, “In other words, you found that your view of the world, your ideology, was not right; it was not working.” “Absolutely, precisely,” Greenspan said.

If only we knew this a little earlier, how much money and suffering could have been saved?  Read it here: http://www.vanityfair.com/magazine/2009/01/stiglitz200901?currentPage=1

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