Tags: Money | criticism | greenspan | term | federal reserve

5 Harshest Criticisms of Greenspan's Term as Federal Reserve Chairman

By    |   Thursday, 09 July 2015 03:19 PM

Alan Greenspan served as Federal Reserve chairman from 1987 to 2006. Through most of those years, America experienced a prosperous economy, but Greenspan also received blame for the financial turmoil that followed.

Here are five criticisms the former Fed chairman faced from observers:

Watch Now: Steve Forbes Slams the Fed in This Video

1. Some of Greenspan’s harshest critics point to his earlier association with famed philosopher and novelist Ayn Rand. Greenspan had been among her followers in the 1950s, starting when he attended Columbia University. He wrote an essay for her "Objectivist" newsletter, which later appeared in Rand’s 1967 book, “Capitalism: The Unknown Ideal.” The essay attacked the Federal Reserve and supported the gold standard to back money.

Former Congressman Ron Paul of Texas once confronted Greenspan about his turn away from Rand’s ideas of free market economics and the gold standard, but Greenspan stood firm with his change of views on economics.

2. A 2013 Forbes article suggested “Greenspan’s lust for the Fed Chairmanship itself foretold his eventual and unfortunate lurch away from market purity in favor of mushy, crisis-inducing interventions from political types long on hubris, but fatally short of knowledge or self-awareness.” Although Greenspan saw the nation go through tremendous economic growth through the 1980s and 1990s, his last five years as Fed chairman witnessed a 13 percent drop in the S&P 500.

3. Greenspan was among those Time magazine cited in an article titled “25 People to Blame for the Financial Crisis.” Time also pointed out he was “a disciple of libertarian icon Ayn Rand” and had presided over an economic boom throughout the 1990s, but low interest rates and an unregulated financial system may have helped spark the mortgage and banking crisis.

New Threat: Glaziev Directive Could Instantly 'Reset' the Value of the Dollar, Destroy Wealth (See Proof)

4. The Financial Crisis Inquiry Commission in 2011 concluded that Greenspan contributed to the economic meltdown of 2008 because of his failure to stop the subprime mortgage loans that helped bring on the housing bubble and bust.

5. Robert M. Solow, winner of the Nobel Prize in Economics in 1987, also noted Greenspan’s failure to recognize the dangerous housing bubble in an article for the New Republic. He pointed out the Federal Reserve chairman’s opposition to financial regulation as well.

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
Money-Wire
Alan Greenspan served as Federal Reserve chairman from 1987 to 2006. Through most of those years, America experienced a prosperous economy, but Greenspan also received blame for the financial turmoil that followed.
criticism, greenspan, term, federal reserve
385
2015-19-09
Thursday, 09 July 2015 03:19 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved