Posts

Showing posts from October 28, 2008

How mighty Greenspan's world has changed

Business Times - 29 Oct 2008

By LEON HADAR
WASHINGTON CORRESPONDENT

THERE was something pathetic about the testimony by Alan Greenspan, the former chairman of the Federal Reserve, before the House of Representative's Committee on Oversight and Government Reform last Thursday.

Here was the man, who only a few years ago was treated as the Oracle of Delphi by his groupies when he deigned to visit Capitol Hill, was suddenly finding himself subject to harsh criticism and even mean ridicule by the same lawmakers who had worshipped at the feet as the High Priest of American capitalism during most of the roaring 1990s.

The members of the Congressional forum who were cross-examining the 82-year-old ex-central banker sounded at times like inquisitors in a religious tribunal or in a Stalin-era show-trial, pressing a beaten-down witness to confess his sins and to repent.

'You had the authority to prevent irresponsible lending practices that led to the sub-prime mortgage crisis. You were adv…