Writing in the
Financial Times the former Chairman of the Federal Reserve and
lifelong libertarian Republican, Alan Greenspan notes
Today’s competitive markets, whether we seek to recognise it or not, are driven by an international version of Adam Smith’s “invisible hand” that is unredeemably opaque. With notably rare exceptions (2008, for example), the global “invisible hand” has created relatively stable exchange rates, interest rates, prices, and wage rates.
The
notably rare exception was the global financial crisis to which Greenspan famously
said
Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief
The deregulated free market did not perform as expected. Greenspan also
put the blame for the collapse of the financial system on a
notably rare exception, a
“once-in-a-century credit tsunami”
Risk analysts are appalled at Greenspan's comments,
said the loquacious Paul Krugman
To be honest, I didn’t know quite how to respond; I was, very nearly, left speechless by the lack of self-awareness on display
Previously Paul Krugman had been scathing of Greenspan's performance
saying that
By repeatedly shilling for whatever the Bush administration wants, he has betrayed the trust placed in Fed chairmen, and deserves to be treated as just another partisan hack.
The comment
notably rare exception has
attracted the dark humour of others;
With notably rare exceptions;
- Japanese nuclear reactors have been secure from earthquakes
- Germany remained largely at peace with its neighbors during the 20th century
- Mrs. Lincoln enjoyed the play
- Saddam Hussein had weapons of mass destruction
- Pompeii has always been a safe place to raise a family
- Human beings are immortal
- insurance is a complete waste of money.
- all swans are white.
And so on. However, the last laugh stays with Alan Greenspan and his
“invisible hand” that is unredeemably opaque
How can something be both invisible and opaque?
