The beginning of the end of Market Fundamentalism
Greenspan admits mistakes in his ideology.How many of us have been saying this stuff, and for how long? The idea that "self-interested" institutions and individuals will always make collectively optimal, or even rational choices is absurd and has been disproved over and over again. Now, Greenspan, the self-titled Libertarian, who worshiped an Objectivist, and governed his central bank like a Neoliberal finally sees the dangers of no market oversight or regulation. That's right, it does not work. It's all about finding the right mix of rules and regulations, private and public, shared risk and individual risk - not just saying "all X is bad" or "all X is good". It has to be an ongoing, constantly renegotiated process and balance. This is one of the tenets of heterodox economics - using empirical methods to find out what works - not just deciding the process and saying that whatever will be, will be. That's called "process legitimizes outcome", and is complete and utter trash.
My, how the mighty have fallen.
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