Before I even begin, I am a Greenspan fan! Under Clinton he was a genius of low unemployment percentage bliss. However, I do not believe he is as shocked as he claims to be by this crisis.
Is Alan Greenspan serious? In Alan Greenspan's most recent interview he called the current financial crisis a "once in a century credit tsunami." Then he had the nerve to end with how this would eventually pass and the nation would have a "far sounder" financial system for it. Um, hopefully that will happen by the time people who need to retire on what we can now refer to (thanks to his colorful quote) as a drowned retirement fund.
I wonder if the people who were actually hit by the tsunami a few years ago feel it has made them stronger, or made them more appreciative of what is left of their lives?
Greenspan needs to re-read (as I can only assume that he has at least skimmed) Adam Smith's Wealth of Nations. "When the regulation, therefore, is in support of the workman, it is always just and equitable; but it is sometimes otherwise when in favour of the masters."
Government regulations within the confines of protecting the public are a good thing! They regulate the amount of our income we "donate" to them, the speed we drive, the amount of public drunkenness we can display, and the emissions level of our cars — all in the interest of our safety and the safety of the world in which we live. I will point out that, in turn, we are supposed to regulate them and kick them out of office for pulling fast ones with our precious safety and well-being, not just for a little under-the-desk intern action, but I digress. Can they please regulate the banks that are recklessly handling our work force's money, credit, and future? They do not have to ultra-regulate. There is a difference between Stalinist socialism and protecting the people from irresponsible corporate policy.
I think what angers me the most is that these anti-regulatory monsters have set us all up for what will be the most regulated economy we have had in a very long time. I do not have the exact time, but wish that I did have it on hand. However, I do know that the only way to solve this now is with mass-regulation. Regulation on how they spend our $700 billion. Let us not forget that no foreign investors will trust us again unless they know our corporate toddlers are being watched — and watched carefully. My toddler could do better! Hey, she already knows that stealing is wrong and unlike the executives at AIG, it doesn't cost her $400,000 to play with her friends or wipe her own butt!