But at least there are still a few voices of rectitude and probity. Out comes that sly fox, Alan Greenspan, announcing that he doesn’t approve of such rescue efforts and opposes an emergency rate cut!
Could this be the same Alan “Bubbles” Greenspan who allowed, encouraged and facilitated history’s largest credit bubble ever? We haven’t checked the fingerprints, but we believe it is.
And it makes sense. The man is a scoundrel but not a fool. He sees trouble coming…and he’s getting as far away from it as possible. Since a real rescue is probably impossible at this stage, he will begin criticising the rescuers…laying the blame squarely where it does not belong – on his successors.
Of course, the rescuers are bound to make the situation worse – just as they did in Japan, where the market pulled back for 17 years…and just as they always do. Capitalism functions best without bailouts. Leaky, overloaded, lost vessels sink; the sea-lanes and ports are opened to new ships and better captains.
But tomorrow’s captains don’t vote, make campaign contributions, work in the big banks, or have lunch with Fed governors. It’s today’s captains who get the favours…and money.
Markets and Money