The latest issue of Time features a cover story entitled "The Top 10 Everything 2008," "a comprehensive look back at the year through a collection of serious and not-so-serious Top 10 lists."
Among the lists included is "The Top 10 Financial Collapses," which, to the magazine's credit, includes the following item:
9. Greenspan's Reputation
The Ayn Rand enthusiast was nearly branded the God of Money. As Fed Chairman, his easy money policy after the dotcom collapse in 2000 seemed like the perfect policy prescription for what ailed us. And it was. Until the chairman refused to do what Fed Chairmen are supposed to: take away the punch bowl just when the party's getting good. By not raising rates quickly enough in a real estate bubble, Easy Al helped let the money flow to every high-risk, no document loan applicant extant. The former Fed Chairman was forced to admit that he was completely wrong about the risks in the system from subprime mortgages and the bonds sold against them. The man famous for his expository obfuscation was forced to admit: I screwed up.
The only thing wrong with this description, of course, is that "The Maestro" screwed things up throughout his tenure at the Fed. Still, you've got to give Time some credit for recognizing what many in the media still haven't quite figured out.
For those who are interested, here are the other nine items on the list:
1. Losing Lehman Any other suggestions?
2. AIG's Credit Default Swaps
3. The Detroit Three
4. The Citigroup Colossus
5. Freddie Mac and Fannie Mae Shareholders
6. Supposedly "Safe" Securities
7. Rating Agencies' Credibility
8. Exploding Hedge Funds
10. Iceland Goes Belly Up
(Greenspan's Reputation)In this meretricious system those who occupy
a position of command are always quoted by
the lower echelon in the hope that some of the
shine & luster will brush off on them,sorry knowledge
& wisdom comes not from these "lèche cul"
Food for thought: Capt. Smith with 30years
of experience & the highest paid Skipper at the time
was considered the best...and as such was given
command of the TITANIC.
Posted by: roger | December 14, 2008 at 09:53 PM
I'm thinking that all of the many individuals in this country whose 401(k)s, 403(b)s, IRAs, Roths, and other retirement investment accounts went belly-up, collectively constitute a Top 10-worthy financial collapse. Their pain doesn't make good drama the way Citi's and Lehman's implosions do, but I assure you, their pain is just as real. My pain sure is, anyways.
Posted by: PDamian | December 15, 2008 at 10:54 AM
I'm thinking that all of the many individuals in this country whose 401(k)s, 403(b)s, IRAs, Roths, and other retirement investment accounts went belly-up, collectively constitute a Top 10-worthy financial collapse. Their pain doesn't make good drama the way Citi's and Lehman's implosions do, but I assure you, their pain is just as real. My pain sure is, anyways.
Posted by: PDamian | December 15, 2008 at 10:59 AM
Lets not forget the press(time included.) eager to praise
these fools,eager to miss-inform the public.
they dished out propaganda not information.
Posted by: roger | December 15, 2008 at 12:14 PM
Bernanke
Paulson
investment banks
low interest as unalloyed good
incentive pay for CEO's
Posted by: fresno dan | December 15, 2008 at 12:16 PM
Time's press deadline excluded l'affaire Madoff, which nicely punctuated the collapse of US financial credibility. Of course, the year isn't quite over yet...
Posted by: Richard K | December 15, 2008 at 01:22 PM
How about a ponzi-scheme-USD-fiat-dollar. This is the root of all of financial collapses, a fiat currency. This is a historical fact.
Posted by: Joe M. | December 17, 2008 at 11:25 AM