He played Colin Powell's role in pimping for the Bush tax cuts and was directly responsible for the real estate bubble that created the illusion of a growing economy during the Bush years. He was a slavish disciple of Ayn Rand and promoted Economic Fundamentalism under the cover of being a centrist Fed Chairman who had only the country's interest's at heart.
Well, today Mr. Greenspan showed a rare quality for movement conservatives and admitted he was wrong.
From testimony in Congress:
Mr. Greenspan conceded a more serious flaw in his own philosophy that unfettered free markets sit at the root of a superior economy.
“I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms,” Mr. Greenspan said.
Referring to his free-market ideology, Mr. Greenspan added: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”
Mr. Waxman pressed the former Fed chair to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Mr. Waxman said.
“Absolutely, precisely,” Mr. Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.”
At least he has the strength of character and intellectual honesty to admit that his theories were wrong. I doubt we will ever see such honesty from Bush, Cheney, Rove or the rest of their cabal.