Thursday, December 11, 2008
Joseph E. Stiglitz, in Vanity Fair:
The truth is, most of the individual mistakes boil down to just one: a belief that markets are self-adjusting and that the role of government should be minimal. Looking back at that belief during hearings this fall on Capitol Hill, Alan Greenspan said out loud, 'I have found a flaw.' Congressman Henry Waxman pushed him, responding, 'In other words, you found that your view of the world, your ideology, was not right; it was not working.' 'Absolutely, precisely,' Greenspan said. The embrace by America -- and much of the rest of the world -- of this flawed economic philosophy made it inevitable that we would eventually arrive at the place we are today.
Image source here.