Former Fed Chairman-cum-author/Deutsche Bank consultant Alan Greenspan said in interview with BBC Radio that he and other regulators were fully—blithely actually—aware of the risks imposed by the complex financial derivatives that helped to fuel the recent market turmoil that’s messed with your shit. So why wasn’t any action taken prior to last week? Because you knew the risks involved, and if you didn’t, you’re dumber than Greenspan had previously thought.
“I must admit that I do not have considerable concern about the net worth of [wealthy individuals investing in hedge funds] going from $40 million to $5 million, which in many cases is what has happened,” he said. In fact, he saw the whole thing as the perfect opportunity to teach you a lesson, not unlike the time he illustrated the dangers of binge drinking to a bunch of middle school students by standing idly by while they downed shot after shot of tequila, saying only to a concerned-looking aide, “this is the only way they’ll learn. Nothing like the memory of a good stomach-pumping to make ‘em think twice about that next drink.”
Oh, and there’s maybe going to be a recession. Maybe.
Greenspan: Recession chance less than 50-50 [CNN Money]
Posted by , Sep 28, 2007 2:06PM
awesome
Posted by , Sep 28, 2007 2:15PM
Actually, Greenspan says that it is more likely that there is going to be NO recession as opposed to recession.
Posted by , Sep 28, 2007 2:19PM
"The danger of a recession has obviously risen, but in my judgment, and I suspect looking at the forecasts of most American economists, is that it is still at less than 50-50," Greenspan said in a broadcast interview with BBC Radio. "It's less optimistic than one would like."
if there wasn't going to be one, he would've said lower chance. it's coming.
Posted by , Sep 28, 2007 2:21PM
LOL
in other news, when Bess Levin posts the terrorists win
Posted by , Sep 28, 2007 2:22PM
that's how i learned binge drinking was bad too
Posted by , Sep 28, 2007 2:25PM
Well, with this post, it's the communists who rejoice, and Greenspan wins (he always wins, and loves free publicity too).
Posted by , Sep 28, 2007 2:30PM
bess, you are awesome.
Posted by , Sep 28, 2007 2:59PM
I'm surprised this guy hasnt been elected Pope yet
Posted by Mike Cervantes , Sep 28, 2007 3:05PM
Glad to see Greenspan is finally showing his true colors. What a friggin' hypocritical ass clown.
Posted by , Sep 28, 2007 3:09PM
Sorry to kill all the joy, but here's a quote from Reuters attributed to Greenspan:
"The probabilities [of recessions in the US and the UK] have risen but I'm scarcely at the point where I'm forecasting (that) we're about to experience significant recessions either in the United States or in Britain."
Posted by glorious , Sep 28, 2007 3:16PM
In fact, he saw the whole thing as the perfect opportunity to teach you a lesson, not unlike the time he illustrated the dangers of binge drinking to a bunch of middle school students by standing idly by while they downed shot after shot of tequila, saying only to a concerned-looking aide, “this is the only way they’ll learn. Nothing like the memory of a good stomach-pumping to make ‘em think twice about that next drink.”
Posted by , Sep 28, 2007 3:40PM
That's just good parenting.
Posted by Ben B. , Sep 28, 2007 3:43PM
what an ass
Posted by Punk Pauper , Sep 28, 2007 4:30PM
Did lots of rich people really lose $35 mil?!?!? While the clowns who ran the hedge funds joined the Forbes list? That is impressive, and kind of criminal.
Posted by Mike Hunt , Sep 28, 2007 5:03PM
@ PP - if thats criminal, count me in!
Posted by amaranth-investor-turned-circus-clown , Sep 28, 2007 5:36PM
i lost 100 mil
Posted by amaranth lost me a lot of $$$$$ , Sep 29, 2007 4:30AM
after losing $35mil, i turned to coke to forget losses
Posted by beanspants1 , Sep 30, 2007 1:09AM
There's nothing wrong with binge drinking, so no lesson to learn. If you can't handle the stomach pump, then you probably aren't worth much. Maybe you can be the singer for a one dimentional Australian pub rock band, but that job title is below desktop publishing consultant.
And just to be pedantic:
You're analogy is not correct. There are less strict reporting rules for investors in hedge funds, because the law makes the assumption that, if you are intelligent enough to earn a few million, then you are intelligent enough to pay lawyers to explain risks to you.
So your middle schoolers don't fall into this category. Stop reframing the issue.