Greenspan says an audit of the Fed would be terrible because it could lead to inflationary policy from the Fed. What do we have to lose?
He denies responsibility for the housing bubble, calling it a global bubble. Yet the dollar is the reserve currency of the world. When the Federal Reserve lowers interest rates (inflates), central banks around the world follow. Greenspan’s monetary policy earned an F, and his defense is that everyone else (who copied him) got an F too?
He goes on to say animal spirits had more to do with the housing bubble and economic collapse than his monetary policy. He then explains how there’s hope for the future because animal spirits can be modeled and forecasted. Thank
God Lord Keynes…