Singapore's low interest rate is good? Think again.
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Greenspan Was `Cheerleader for Imprudence,' James Grant Says
By Jeremy R. Cooke
Oct. 23 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan fueled Wall Street's stumbles by cutting rates so low they encouraged the use of borrowed money to boost returns, said James Grant, editor of Grant's Interest Rate Observer.
The turmoil in credit markets, worsened by excessive leverage Greenspan's tenure, shattered the idea that the Fed and its chairman from 1987 to 2006 were ``in perfect control'' of steering the U.S. economy, said Grant, founder of the financial newsletter that bears his name.
``The biggest mistake was inciting people to do imprudent things,'' Grant said in an interview on ``Night Talk'' with Mike Schneider to be broadcast later today on Bloomberg Television. ``He didn't have to be a cheerleader for imprudence.''
Greenspan said today at a Capitol Hill hearing that he was ``partially'' wrong for opposing the regulation of derivatives over the years. The former Fed chairman endured hours of questions from lawmakers seeking answers to what caused the financial crisis that has upended Wall Street and slowed the national economy.
``Mr. Greenspan, our former chairman or former clairvoyant, was and is marble-mouthed,'' Grant said. ``He can't simply say, `I was as blind as those I pretended to lead.' This sense of security that people invested in the idea of perfect control by an all-knowing brain at the top, that idea's been shattered.''
To contact the reporter on this story: Jeremy R. Cooke in New York at [email protected].
Last Updated: October 23, 2008 18:15 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=afRzA77kO4go&refer=home
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But, you know, the head of the Federal Reserve is meant to be the most senior regulator in the country. And in this instance, you know, he stands accused of making two major mistakes: one, keeping interest rates low for too long and allowing a housing bubble to occur; and, B, abdicating his responsibility as a regulator.
http://www.pbs.org/newshour/bb/business/july-dec08/crisishearing_10-23.html
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Singapore is much like the blind (PAP) leading the blind (citizens), they always AssUMe that all the PAP scholars are smart and they will do the right thing.
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but the govt don't lend money to people with no money
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Originally posted by kramnave:
but the govt don't lend money to people with no money
.I didn't know our government is in the business of making loans to "people".
