Posted on 03/29/2011 9:02:15 PM PDT by NormsRevenge
LONDON () – Sweeping regulation introduced by the US to prevent future financial crises could create major "market distortions" ex-Federal Reserve chief Alan Greenspan wrote in Wednesday's Financial Times.
The former bank chief slammed the Dodd-Frank act, which imposes wide-ranging and strict new checks on financial institutions, for failing to "capture the degree of global interconnectedness."
"The act may create the largest regulatory-induced market distortion since America's ill-fated imposition of wage and price controls in 1971," warned Greenspan, who was Fed boss from 1987 to 2006.
The economist has been widely accused of having encouraged the recent US housing bubble that led to the recent financial crisis, due to his low interest rate policy.
But Greenspan, in his article, pointed out several areas where he believed the regulation was hindering economic recovery.
Greenspan argued that firms such as Ford Motor Credit were struggling to pull out of the slump as they could not meet credit rating requirements needed to raise funds.
He also said that new rules on proprietary trading unfairly punished US banks.
He warned that a "significant proportion" of the foreign exchange derivatives market could leave the US and that rules to limit bloated Wall Street bonuses would fail.
Top bankers would simply leave to work for their major "clients", he wrote.
(Excerpt) Read more at news.yahoo.com ...
Greenspan seems like a smart guy. But then you remember who he married!
The list, ping
Let me know if you would like to be on or off the ping list
Imho, based on the little I’ve read here, Greenspan is correct.
classic liberalism.....create the problem with govt. regulations.......blame capitalism when it falls flat on its face........and then “fix it” with even more market warping govt. regulations..........
only a liberal would think of it....
.....but its the new normal......
Where was he when we needed him?
Please remove from list, thanks.
Where was he when we needed him?
Talking his gibberish. I’ve listened to him and couldn’t figure out half of what he was saying.
and the proof of his scam thinking was what he wrote in 1966!... http://www.321gold.com/fed/greenspan/1966.html
Go talk to your wife, Al.
Wait Greenspan was the financial system for decades?
And a member of the CFR enough said sorry not buying it he is also part of the problem.
Wait Greenspan was the financial system for decades?
And a member of the CFR enough said sorry not buying it he is also part of the problem.
Greenspan helped create this mess and now he’s whining? we’ve officially seen it all
i really thought it’d be more difficult to implementt central planning, though.
He’s been all over the board, hasn’t he? Guess it depends on who’s signing the check.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.