Peter Schiff Takes On Greenspan's 66-Page Report On Financial Crisis (Brookings Institute)

Peter Schiff responds below to Greenspan's 66-page recent report found here (Brookings Institute).

"This new market-based workforce, Greenspan said, helped push up growth in the developing world. This in turn fueled a global savings glut that drove down long-term interest rates, leading to an "unsustainable boom" in house prices, he said." (Reuters)

Remember he was always wondering why the long end was moving lower in 2005?  Calling it a "conundrum".  Greenspan also testified before congress in October, 2008 and said he found a flaw in his ideology.  Here is the video (Dissecting Alan Greenspan's Testimony, Finds Flaw in His Ideology).  Peter Schiff says it was all because he left short term interest rates artificially low for too long and he warned about housing in 2006 (Bloomberg/CNBC videos from 2006).


Comments

  1. Good Afternoon Mr. Schiff,
    I appreciate the commentary and agree whole-heartedly with much if not all the ideas purveyed both current and previous. I see the import of similar dialogs and the need not to relegate them to what could be considered as “spilled milk” arguments. I consider rationalist like you to be very important to how macro/micro economics evolves and how it is used and approached in the future, which is my future as a current student of finance/economics. My concern and the reason for my comments, Mr. Schiff, is I felt the use of the ad hominem in the beginning of your commentary detracted from the commentary itself and although I appreciate these conclusions, there use in dialog as important as this one is considered a detriment by this humble reader/watcher. My comments are in no way to be construed to impugn your integrity or the overall significance of the ideas emoted and are only purveyed to give you perspective in how your readers/watchers may underwrite the appearance of impropriety that the use of ad hominem could hold. Mr. Schiff, as a lieutenant in this war against the use of fiscal and monetary policies to perpetually stimulate aggregate demand, I consider you one of many of my Generals, and as I am duty bound to give you perspective of what the boots on the ground are seeing, I recommend that we leave the use of logical fallacies to our detractors as we will win the battles and war through just the weapon of reason.
    Thank you for your time,
    Austin Baker

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