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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (263918)	7/25/2010 6:40:50 PM
From: bentway	Read Replies (1) \| Respond to of 306849

If they weren't Keynesians before the Great Bush Depression II loomed, they quickly caved and became Keynesians. They realized their theories had caused the collapse, which was never supposed to happen, and offered no remedies.. Greenspan at least admitted his life-long Randian beliefs had been in error.

To: koan who wrote (263918)	7/25/2010 9:44:48 PM
From: pstuartb	Read Replies (2) \| Respond to of 306849

Keynes' basic idea was that the private sector mis-allocated resources and it was the government's job to step in and set things right through both fiscal and monetary policy. Greenspan supported financial deregulation, but he was also massively interventionist on the monetary side. Look at all the fiddling he did with interest rates and the money supply. He pumped money in 98 (LTCM) and again in 1999-2000 (Y2K), and again in 2002-3 while taking short rates to near 0. All of that liquidity and easy credit helped set the stage for the housing bubble. Regardless of whether he had a hard on for Ayn Rand when he was young, he fell in line with the Keynesians when he was Fed head.