Greenspan loves Ayn (still)

Greenspan Concedes Error in Regulatory View – NYTimes.com

Mr. Greenspan said he had made a “mistake” in believing that banks in operating in their self-interest would be sufficient to protect their shareholders and the equity in their institutions.

Mr. Greenspan said that he had found “a flaw in the model that I perceived is the critical functioning structure that defines how the world works.”

Mr. Greenspan, who headed the nation’s central bank for 18.5 years, said that he and others who believed lending institutions would do a good job of protecting their shareholders are in a “state of shocked disbelief.”

When asked what we could do to fix the mess that he had caused, Greenspan mysteriously responded

“Who is John Galt?”

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Ragged Clown

Based in San Jose, California

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