I find Greenspan's view so narrow. The idea of regulation is to admit human nature and guard against it with appropriate systems, doing this well and with balance is of course not easy, but he's essentially putting his hands up and saying "We're all greedy bastards so let's go fuck ourselves again. With chainsaws. And why not up the ass?"
One aspect of regulation is that it limits the role of speculation in the economy. This is healthy. Why should 35 year olds looking after the interests of the quality of their next family holiday determine how so much of resources are allocated. Economics, after all, is about incentives and the current (soon to be former) system gives these guys too much of a strong play. It's such an imbalance, I find it amazing that Greenspan continues to support anti-regulation. He's no doubt a man with exceptional qualities but his restricted view speaks of precisely the fuck up that maybe not individually him, but his generation presided over.
It's so good they're on their way.
1 hour ago