I speak of course of Alan Greenspan, who in a recent Bloomberg Business Week interview said that he is occupying himself today “trying . . . to figure out” how “fear, euphoria, and herd behavior significantly affect modern economies.” So THAT’S what caused the crash — extreme happiness coupled with fear and animal spirits. This is the essence of Keynesian economics in terms of its attempt to explain depressions. John Maynard Keynes himself blamed the paucity of private business investment during the Great Depression on “animal spirits.” He hadn’t a clue, in other worlds. Greeenspan’s recent bloviations about “euphoria” and “herd … Continue reading Voodoo Economics Witch Doctor