On: Paul Volcker: ‘The Time We Have Is Growing Short’

[j_baker]

These are different economic situations. But I don't see them being that different except in terms of how our leaders acted in the situation. Alan Greenspan said that he could have stopped the crisis albeit at the expense of a recession with 10% unemployment[1]. In other words, he chose not to do roughly what Volcker did. I'm not saying that's wrong, I'm just saying that there are some places where the current crisis has similarities (and dissimilarities).

[1] http://www.cnbc.com/id/15840232?video=1029053619&play=1

[stretchwithme → j_baker]

Greenspan is a disgrace. He says he was wrong when he relied upon the market to work.

But the government setting the cost of borrowing money is NOT letting the market work. He doesn't seem to understand what a free market is anymore.

And this bubble would never have developed without the government lending so much money at way below market rates.

[j_baker → stretchwithme]

"But the government setting the cost of borrowing money is NOT letting the market work."

Erm... so you're saying that the Chairman of the Federal Reserve isn't a big enough believer in the free market if he doesn't want to abolish the Federal Reserve?

[stretchwithme → j_baker]

I'm saying that in a free market the Federal Reserve would not be setting interest rates. Or the price of anything else. prices would be arrived at through mutual agreement between buyers and sellers.

I can't see how anyone who truly believed in a free market would participate in this massive distortion.

but, hey, that's just me. I'm one of those ingrates that doesn't believe our currency should be controlled by bankers to do with as they wish unaudited.