Today, 10/23/2008, Marked The Official End Of Reaganomics

Today former Fed Chairman Alan Greenspan confessed that his economic paradigm - which is, essentially, Reaganomics - was not only dead wrong, but it was a total catastrophe:

“Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,”

“This modern risk-management paradigm held sway for decades,” he said. “The whole intellectual edifice, however, collapsed in the summer of last year.”

This crisis,” he told lawmakers, “has turned out to be much broader than anything I could have imagined. It has morphed from one gripped by liquidity restraints to one in which fears of insolvency are now paramount.”

Crazy stuff.

Reaganomics has finally moved to the trash heap of history.

It was major news here in Canada. "Greenspan admits his theories were wrong".

And most of the credit for making him admit that was given to Waxman.

K&R.

People in Massachusetts are sane and nice, but we have all of those nutty red states in the US that cause such aggravation. Canada seems to be more or less uniformly sane and nice.

He must be serious.

Unchecked, self-interest leads ultimately to disaster every time.

:evilgrin:

my husband, who IS an economist, has been calling for the hauling up on charges (figuratively) of Greenspan for months. I am so glad he was hauled up before Waxman's committee. We need to have transparency and see the true extent of the mess and how it all came down, to get on with the rebuilding.

Rest in HELL, Reaganomics.

i wouldn't be too sure of that if i were you- the public has a short memory, and repuglicons are very loud and demanding...and democrats in congress are very good at acquiescing.

about "the whole intellectual edifice". It is is common practice to have the perpetrator write out his confession in detail.

Most Washington bureaucrats, even those taken from Wall Street, wouldn't admit to ideological error of such magnitude.

If I feel any sense of Schadenfreude, it is not directed at Mr. Greenspan; rather, while standing on the grave of Ayn Rand, it is directed at the rotting corpse of a quack philosophy called objectivism laying below.

I don't think they'll ever give up, but it's nice to see that the election has become a referendum on trickle-down, and most people aren't buying it.