Greenspan accountability

					Greenspan accountability
Greenspan accountability
http://www.sina.com.cn 2008 年 10 月 27 日 07:42 First Financial Daily


Hua Qi
Late autumn in Washington, chill getting stronger, Capitol Hill, wrap the line people
have a trench coat and jacket.
This is a troubled, people on Wall Street's turmoil has some numbness.
Metro free newspaper distributed on the day before the Dow plunged 514 points, the
news, only occupy a small corner of the front page.
At the same time, on this financial crisis are beginning to settle scores. October 23 10
am, the House of Representatives office building, government oversight and reform
committee of the Chamber, the door closed, once the three financial giants: the former
Federal Reserve Chairman Alan Greenspan, former U.S. Securities and Exchange
Commission Chairman Christopher Cox (Christopher Cox) and former Treasury
Secretary John Snow (John Snow) are here to testify. The three senior officials who
used to face unlimited financial Congressman who sat, every move will shutter-like
sound waves.
Hearing the theme: the financial crisis and the federal rule-making role. In this room
can only accommodate 100 spectators Chamber, Mr Representative want to find out,
who should be deeply shocked the world for this crisis is responsible?
"I was wrong"
Greenspan is still handsome, wearing the iconic round spectacles. This used to be
regarded as the United States and the global market, "Stand" the
god of wealth, today dropped the mortal world, to face questions from the general
public.
His testimony will blame the collapse of the subprime mortgage market, the excessive
greed of investors, that they ignore the risks of falling house prices. As the House
government oversight and reform committee chairman, Democrat from California 亨
利韦斯曼 (Henry Waxman) is that Greenspan have a responsibility, because he was
in office refused requests from outside the Fed to apply the subprime mortgage
industry monitor calls.
Weisman sitting in seats in the Central, the first to launch an attack Greenspan:
"The Federal Reserve and other federal agencies rule-making errors and
wrong decisions could be out a long table. But my question is very simple: you are
wrong?"
"Yes, I admit in part." Greenspan said. The belief in free market
theory almost his entire life scholars admitted in his philosophy there was a major
mistake, "I made a big mistake, I think that self-financing organizations,
such as banks and other companies, they can protect themselves shareholders and
their companies net assets. But this is not so. "He admitted his mistake did
not attempt to regulate illegal in the credit swap market.
Earlier this month, Greenspan gave a speech at Georgetown University, said:
"Wall Street's misbehavior is the cause of this financial
turmoil." Proliferation of credit derivatives lead to the final part of the
financial crisis, but the main responsibility lies with market participants greed.
Despite claims to the free will of those who firmly believe that Greenspan, the
behavior of financial market participants is reliable.
Weisman said the former U.S. Federal Reserve closely chasing stars, "so to
say, you find your world, your ideology, are not correct, all the operation is not
working?"
"Yes, you can say." Greenspan responded, "You
know, this is incredible I was shocked because of this crisis, because I use free-market
more than 40 years experience tells me that it runs very well . ""
And now I have this theory found a flaw, I do not know how important this is, how
far-reaching impact. I feel sorry for the discovery of this fact. This is a rare financial
tsunami. "
"I did not expect such a ferocious"
Greenspan, talkative, from August 1987 to January 2006 the Fed helm 18 years and a
half, in his resume, there is a record U.S. economic growth for over 10 years of
glorious history. During his term, although the United States through New York stock
market crash, the Asian financial crisis, the Internet bubble burst and the
"9.11" terrorist attacks and other major crisis, but
Greenspan's interest rate lever fully mobilized to prevent a U.S. recession.
Fed cut 11 times in 2001 federal funds target rate, from a high of 6.5% down to 1.75%;
in 2002 and 2003, the Federal Reserve to continue cutting interest rates, ultimately the
federal funds target rate down to 1% of the 50-year low. This low-interest state
continued for a year, until June 2004 before raising rates again. And such excessive
interest rates, is also considered to be the culprit leading to one of today's
real estate bubble.
Greenspan is also a strong advocate of free markets, financial derivatives have a
special preference, in his influential speakers are instructions from the era of the gods,
he has been to avoid the strengthening of financial sector regulation. He has also
published in the May 2005 speech, said: "Facts have proven that excessive
profit-taking from the inhibition of behavior in terms of overall civil regulation is far
better than government regulation."
Greenspan's critics accuse him of in the past 10 years will be lowered
interest rates too low a level which triggered the real estate market bubble, the Fed,
under his leadership also did not include the stimulation of new mortgage lending
patterns, including imposing strong influence and oversight. This is to blame for the
current financial crisis.
Democratic Representative from Ohio 丹尼斯库奇 Nicky (Dennis Kucinich) and
other representatives have dug out the old account Greenspan. They both sides of the
projector at the venue on the hit 2005 to 2006, Greenspan had to say. September 2005,
he said: "Most homeowners have certain assets of precipitation to the fight
against certain housing prices." May 2006, Greenspan said: "We
will not enter the situation of falling prices, there is no evidence that housing prices
will fall sharply. "In the same year in December, he added:" It
looks like the worst time is over, the global economic development trend is good, the
situation does not look bad. "
January 2006, Greenspan had the outgoing Fed chairman, he looked a bit helpless,
"recalls the past, in early 2006, I can actually feel the presence of the
housing bubble, but I did not expect such a violent situation changes, we not such a
significant decline in prices. "
"This crisis is too difficult to predict"
"The Fed is a good organization, but we can not predict what humans will
do." Greenspan explained. He even cited the following example, that
prediction is very difficult for such a major crisis, like Mangrenmoxiang, everyone
can see that part, but few people can grasp the whole picture. However, this statement
does not allow lawmakers satisfied. "We are talking about you in their
place, to the interest of his." Florida Republican Yuehanmika (John L.
Mica) is very excited to leave after questioning.
"We set up institutions like you to give you the budget to hire you is that
these people see the problems before the crisis came." Weisman continued
aggressive, "but you just do not see the problem that it can not get my
satisfaction."
Accompany the presence of Cox and Snow Greenspan also failed to escape
completely unharmed. California on behalf of 杰基斯皮尔 (Jackie Speier) release in
the projector a picture, that is December 15, 2000 afternoon, a lifting of the many
complex financial derivatives regulation bill was adopted, the Ministry of Finance
officials and banking executives at the ribbon-cutting ceremony celebrating the
control cancel. Spear to attack with this picture when he was Treasury Secretary John
Snow is not the banking industry to strengthen the control period, Snow look of
confusion, Liangshouyitan said he did not even appear in this photo.
Hearing lasted four hours. Greenspan's self-defense is not hard to win
recognition of the delegates. "I am not satisfied with their explanation
today, it is obvious that some people should take action in their time
asleep." Representatives from the Maryland 艾 里 亚 昆 明 斯 (Elijah
Cummings) told reporters after the meeting said "I think Greenspan as he
said, did not look at this crisis coming, did not anticipate the impact of the crisis so far,
is at fault. but it can not be attributed to a person at fault. At present, reform is The
most important thing. "
Washington bookstores, Greenspan published last September on the
"turbulent times: New World of Adventure," also placed in the
best-selling shelves. One year later, 82-year-old Greenspan really gone through a
tumultuous era.

				
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