With his limited understanding of things financial, Greenspan should never have been Fed chairman. Bernanke is the same. Greenspan said: “Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity (myself especially) are in a state of shocked disbelief.” He’s not Claude Rains, either. He really is shocked. He’s shocked that banks overextended themselves into risky loans? Under his oversight? Some at least of the major bank failures in 1930 had the same factor involved (Caldwell and Company, Bank of the United States). Foreign banks that lent long-term to industry and also bought industrial … Continue reading Greenspan reveals his ignorance