Are You Ready for the Next Crisis?
Mr. Roberts was the Assistant Secretary of the U.S. Treasury during the Ronald Reagan administration, becoming known as “the father of Reaganomics.” He is a former associate editor of the Wall Street Journal and a syndicated columnist for creators.com. A Republican, he has gone public in his criticism of the Republican Bush administration and now, the Democratic Obama administration.
Former Federal Reserve chairman Alan Greenspan answered that he had placed his trust in a flawed theory when he was called before Congress to explain why he, Goldman Sachs Treasury Secretary Robert Rubin and Deputy Treasury Secretary Larry Summers, prevented Brooksley Born, head of the Commodity Futures Trading Corporation, a government regulatory agency, from doing her job of regulating over-the-counter derivatives.
The efficient markets theory is that unregulated markets are efficient and rational. According to this theory in which Greenspan placed his trust, unregulated markets produce the best possible result. Any regulatory interference worsens the outcome.
Full article [VDare.com]
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