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Alan Greenspan Loses His Mind

Why blame Greenspan and the Fed? When the twin Towers fell and economic activity went into freeze mode, the Fed came through and restarted the economy. That single action makes having the Fed worth while.

If you are looking to blame anyone blame the 9/11 terrorists who hurt the economy (Bin Laden was an economics student ) and led us into the inflationary Iraq war. The Five deferment Dick and Dubya show shares a lot of the blame for prolonging the inflationary spiral. Greenspan's Fed did the patriotic thing and the right thing at the time.

The Fed's problem is one of moral hazard. They can lend the money but cannot overcome the greed and other deadly sins of the borrowers. They cannot change human nature. That is not the business of the Fed.

It is unfair of Kedrosky and others to blame one single individual. What pray did any of these critics do when the economy froze in 2001?