Greenspan deregulated!


Shockingly endorses at least a teensy bit of government control of Wall Street.

Ayn Rand must be so upset at her former acolyte Alan Greenspan.

Earlier today, Greenspan reluctantly admitted that some regulation might be needed to help solve what he called a “once-in-a century credit tsunami.”

He actually acknowledged that, just maybe, Wall Street’s bankers didn’t do a very good job of regulating themselves.

Of course, Greenspan and the bankers act as if this global financial meltdown is a natural disaster, instead of an unnatural one. That’s the same excuse we heard in the wake of Hurricane Katrina. At least that crisis was precipitated by a natural disaster. It was the pre-planning and post-hurricane response that were manmade disasters.

On the other hand, maybe they’re accidentally right — in part. Tsunamis don’t just happen; they’re the ocean’s response to a blowup of some sort. What the bankers don’t want to admit is that they, with Greenspan’s help, blew things up and caused the shockwave that caused the tsunami.

Our mortgages bankrolled their game. And this what we get for their fucking with our money.

Back to Ayn Rand: Greenspan sat at her feet half a century ago, a rapt pupil at her Saturday night salons (see the Greenspan timeline at

There must have been some heavy bloviating at those sessions, and the servants’ ears must still be burning. Rand’s Atlas was born to shrug at the poor, even the middle-class. She was famous for putting her trust in industrialists and other bigshots to run the world as they see fit. Real men don’t need regulation — that’s a core belief for Rand and her pupil Greenspan.

But earlier today, during the Waxman Committee’s meltdown hearing on the “role of federal regulators,” Greenspan said:

As much as I would prefer it otherwise, in this financial environment I see no choice but to require that all securitizers retain a meaningful part of the securities they issue.

How dare he suggest that Wall Street bankers have to play with their own money, instead of being bankrolled by our mortgages!

I must be hallucinating, but Reuters confirms Greenspan’s kinda, sorta apologia:

Former U.S. Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

Where is John Galt? On his way to kick Greenspan’s ass.