re: this whole idea of Greenspan controlling the stock markets
Until the early 1900s, the U.S. had no Fed, no SEC, basically an unregulated free market. Through the 1800s, we had market panics every 3-5 years, continual swings from easy money to credit crunch, and market manipulators who cornered markets in stocks and commodities. Read some economic history for some really unnerving stuff.
Actually, the Fed makes decisions by committee. But Greenspan's reputation is so strong, that he can get the group (FOMC) to vote the way he wants. And, he wouldn't take positions publicly, unless he knows he has the votes to back him up.
Compare the stability, transparency, and prosperity of the last 20 years, to any other period in U.S. history, and give Greenspan much of the credit. |
