THE CURMUDGEON CHRONICLE ©
AN IRREVERENT VIEW
Time Line: September 20, 2007
Date Line: Flemington New Jersey
Few who are revered as icons can stand the test of time: the corollary is that some misfits emerge as icons in time’s fullness.
We have seen such political icons as Mussolini, Stalin and Hitler descend to the lowest level in human esteem. Piltdown man\, glorified as an icon of Homo sapiens development, was proven to be a fraud. Those icons who taught that the sun revolved around the earth or the physicians who bled and purged their helpless patients into early graves are not revered. They have been replaced as icons by people once deemed idiots by political and scientific communities.
The rate of icon replacement is quickening. Now that we are so good at communication, yesterday’s icon becomes today’s misfit (and vice versa) at the press of “send” on the keyboard.
Where the descent from grace is the result of external forces, we accept our misplaced reverence without shame. Where shortcomings are evidenced by conduct unbecoming to an icon, we think, “Why didn’t I recognize that sooner” and vow to be more careful in future.
But what to do when proof that a person is a clay-footed idol comes out of the paragon’s mouth in the belief that he is justified in having gulled you? Thus we look at Alan Greenspan.
During the past five days I have seen (and heard) Mr. Greenspan on radio and television. While plugging his new book he has made the following admissions:
a) When responding to Congress he used doublespeak that didn’t answer the questions put to him. He said that his response was so convoluted that Congressmen never followed up on the question asked.
b) He stated that the policy of the Fed under his leadership was to help the stock markets because when the share prices are up everyone feels good. The Fed never tried to deal with the alarming growth of credit card debt at interest rates once deemed to constitute criminal usury. Yet. he chastised the nation for not “saving”, knowing it was impossible given the level of debt carried by the average American.
c) He said that he has been doing economic forecasting for 50 years and is no better at it today than he was 50 years ago. Was that comment an attempt to reach common ground with a dumbed down readership? If so, I think all of us have just been insulted.
d) While in office he railed against booming housing sales and rising prices, and fostered the notion of a “housing bubble”. Yet he made no rules about mortgage lending, derivatives, and securitizations based on the assets in the “bubble”. In a radio interview this morning he said that it was imperative for housing prices to rise if we are to avoid a recession since housing is a key driver in the economy.
d) He says in his latest book that the Bush Administration was profligate and that the Bush tax cuts were ill-advised, I distinctly heard his testimony to Congress praising the tax cuts and the administration’s awareness of the country’s needs.
Is this the man who stopped inflation as many claim? Did he really lead the Fed wisely? Is he worth listening to any more than your grandchild who has completed a basic course in economics? At least your grandchild is not going to dissemble to mislead you.
Unlike Jimmy Carter, (one of our less effective Presidents), who has become an icon in the world of philanthropy, Mr. Greenspan out of office seems worthy of this year’s Former Icon Award (with foot-in-mouth clusters and ribbons).
Listen up Alan: If you don’t want to be relegated to the Idiot Group, shut up!
Howard Stamer
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