October 09, 2008

Greenspan vs. Buffett

Was the US economy led down the wrong path by Alan Greenspan? Today’s New York Times weighs in:

"If Mr. Greenspan had acted differently during his tenure as Federal Reserve chairman from 1987 to 2006, many economists say, the current crisis might have been averted or muted."

“ 'He had a way of speaking that made you think he knew exactly what he was talking about at all times,' said Senator Tom Harkin, a Democrat from Iowa. 'He was able to say things in a way that made people not want to question him on anything, like he knew it all. He was the Oracle, and who were you to question him?' ”

Read the full article for a good review of the dangers of faith-based economics – and the risks created when economists are treated as celebrities.


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