Greenspan's Despicable "Not My Fault"
This guy, architect of two of the big asset bubbles in history, claims he had nothing to do with them. Unreal. Here he is blaming the housing bubble on emerging markets.
Al, of course, ignited the fire in the housing market it two ways. By giving out money for free, and by refusing to exert his control (via official means or using his moral authority) over the rapid inflation in global credit and money supply. He knew darn well that the ponzi scheme of CDO financing was the primary inflator of home prices, yet he said nothing about it, did nothing about it, and still refuses to believe he could have done anything to stem it.
Not a surprise, because this very smart man is locked in a prison of excuse-making where truths are twisted to suit the convenience of his personal myth-making. Take his bogus rewriting of the history of the tech boom he presided over: Not only did global share prices recover from the dot-com crash, they moved ever upward.
Wrong, Al, dead wrong. The shares that pushed the stock bubble, the overpriced techs, have performed terribly. Giant swaths of them disappeared completely. Even the best companies have yet to reach those share prices, (CSCO, MSFT, DELL, HD) and it wasn't just tech. Look at WMT and HD too.
As a general rule, the stuff that was fairly or under-valued during the tech boom did well subsequently. The overpriced assets take forever to recover, and produce no return for decades. That's what's going to happen to homes, but it might take longer, especially if bureacrats believe flimsy excuses like Al's.
Why can't this man, faced with the consequences of his failure, simply admit he screwed up royal? Gotta live with his belief in the great man, and try to build his personal legend, even if that means taking to the pages of the WSJ to cry about how things aren't his fault.