Sunday, April 11, 2010

Jim Grant Rips Alan Greenspan a New One.

Take eight minutes and enjoy Jim Grant's commentary regarding Alan Greenspan's tenure at The Fed.

It is refreshing to see someone with credibility tell it like it is.

Could 'Reaganomics' and Ayn Rand being going down in flames together?

While watching the interview think of who made the following statement. (Answer below video.)

"The house-price bubble, the most prominent global bubble in generations, was engendered by lower interest rates, but it was long-term mortgage rates that galvanized prices, not the overnight rates of central banks, as has become the seeming conventional wisdom."

Answer: Alan Greenspan.
I am perplexed,perhaps Mr. Greenspan should have taken an Economics 101 refresher course instead of memorizing Atlas Shrugged. Does the concept of yield curve ring a bell?

1 comment:

Mitch said...

Jim Grant has been railing against Greenspan for years. I remember meeting him in Detroit in 2004, calling him an "overhyped civil servant".