Anyway, I don’t want to get into those political stuff. My point is, probably he has his share of mistakes. Of course, he is not alone in all this. It takes a meltdown of the whole system for us to get here, from regulators including the broader goverment (democrats and republican; congress and presidents), from business to consumser, from wall street to main street, from US to China,…each made some convenient choice without thinking the long term.
But the human nature when we hear the blame, we will say: no, not my fault.
Psychology 101: denial is the first response we hear bad news.
Greenspan (regulators): for he kept interest rate too low (1%) for too long, during the recession after dot com bubble.
Bush (politicians): for his failed Iraq war which cost American tax payers more than 500 billions so far. He asked American “go shopping” after 911, in addition to buying a car or a house. Democrats are no better in this aspect: Fannie Mae and Freddie Mac have deep roots in Democrats leadship.
(Video by LATimes: anxious customers on day 2 of IndyMac Fed takeover)
Mr. Greenspan (former US Fed chief), Jim Rogers (legendary investor), or Shang Fu Lin (Chairman, China Securities Regulation Committee)?
For me this is an easy pick (the latter two). But it seems people in the west believe in Mr. Greenspan better. Now after making comments in Feb (which partially caused the Feb. 27 crash), the old man speaks again. Don’t get me wrong, I have a lot respect for Mr. Greenspan regarding economy indicators, monetary policy, all the good stuffs, but not on the Chinese stock market.