WHERE ARE THEY …

WHERE ARE THEY NOW: 25 People Who Helped Cause The Financial Crisis

 

Central bankers

Alan Greenspan, chairman US Federal Reserve 1987-2006
A disciple of libertarian icon Ayn Rand, Greenspan became chairman of the Fed just in time to save the global economy from the 1987 stock market crash from becoming a full-blown disaster. He went on preside over the boom years of the 90s and lead the US economy through the aftermath of the September 11 attacks and was widely referred to as an “oracle” and “the maestro”.
But Greenspan’s super-low interest rates and consistent opposition to regulation of the multitrillion-dollar derivatives market are now widely blamed for causing the credit crisis. Under Greenspan’s tenure the derivatives market went from barely registering to a $500 trillion industry, despite billionaire investor Warren Buffett warning that they were “financial weapons of mass destruction”.
His rock-bottom rates encouraged Americans to load up on debt to buy homes, even when they had no savings, no income and no job prospects.
These so-called sub-prime borrowers were the cannon fodder for the biggest boom-bust in US history. The housing collapse brought the global economy to its knees.
He was given an honorary knighthood in 2002 for his “contribution to global economic stability”, but in 2008, at a Congressional hearing investigating the causes of the financial crisis, Greenspan finally admitted he “made a mistake in presuming” that financial firms could regulate themselves.

Advertisements
Previous Post
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: