Tagged: crash of 2008

Busting the Greenspan Myth 0

Busting the Greenspan Myth

Greenspan asserts that self-preservation keeps markets in check, and his invisible hand approach is based on the presumption that getting wiped out of financial existence is enough of a deterrent. But he is wrong for two reasons: Some banks these days are “too big to fail” and backed by their sugar daddy, the U.S. Treasury, so they’re free to bet the pot — which is what led to the 2008 crash. And two: he misreads the human nature to game the system. The more money involved, the more — not less — likely people are to lie, cheat and steal.