He says he didn’t see the housing bubble emerging 7 years ago and that regardless the bubble wasn’t his fault anyway.
Now Greenspan doesn’t see a bubble in stocks. Valuations are increasingly out of whack. The Fed has held rates at 0% for a half decade, but there’s no bubble.
Where do modern economic bubbles come from? They come from the world central banking system, chiefly the Fed, the prime mover of crony capitalism.
3 key components to wealth which lasts generations are said to be gold, land, and art. The first 2 classes are somewhat obvious, but art is less so. Yet the rich over the centuries have always invested in paintings and sculpture.
The fed will have trouble brushing this off.
Sure the Community Reinvestment Act (a totally crony law) had something to do with housing’s abrupt rise and fall in this country. And there were other factors besides Fed policy. But the primary reason why the global housing bubble, and before that the tech bubble, blew up and then collapsed is because of the easy money policies of one Alan Greenspan.
When the man who couldn’t recognize a stock market bubble says this, watch out.
All waves fall on themselves. Some peter out slowly and evenly over soft sand. Others crash down in violence and fury over fire coral reefs. But every wave ends and the wave in the stock market will end too.
Unfortunately he doesn’t appear to have a clue what causes them.
Rothbard is someone who deserves more attention. Outside of “free market” circles he is little known, though his stature seems to grow with each year.
His was an unbridled intellect. He was uncompromising in his advocacy of free prices, free markets, and freedom generally.