i lost allot of respect for our respective may might be thinking well how much but could
you have left form anyway
he built up this bubbled up first but
uh... i did have some respect for me for it if you remember i've taken on burning king
guidera summers a million times and
from time to time i've explain greenspan's role in it
but the one thing that i like the bagri span was that at one question by waxman hit earlier
said
look my world view on this was a little wrong i thought that they were going to regulate
themselves the banks and we were wrong about that and they didn't and it collapsed
so that was a very very important mission
and because those images are important so we know what to do next and we get back right
well greenspan pretty much wipe that off the board today
first of all
he came in saying a lot of things that were correct okay so that's our doctor that he
talked about what was wrong with the system
here three things that are mention that the solicitor press summarizes
uh... that they should be open to the bank should be required to hold more capital as
a buffer against before long losses
actually true
force to keep more cash abt like asses instead of investors they can be hard to sell
so they're more liquid when they need that money absolutely
and our choir dot world more collateral to protect against default
by other financial company so it when i actually goes under
if you've got enough money to back yourself up you're gonna be okay if you're not
then you have a worldwide collapses we had so he he act really analyze that
he says the new york fed which tim geithner and
uh... with their super bowl of eyes a role was quote less than ideal
bracket so they screwed it up
and i don't think you know i love this is all really good and he for leaving he says
look
they've needed about two-and-a-half times the amount of capital that they had it was
comically under
uh... capitalized produces a justin it taking these huge bets and they don't have enough
money to back it up
so he analyze that problem correctly
so what did not like about greenspan
uh... in his testimony today
when he came to ang
so whose fault was it was should we have done right
and b_ what should we do next well that's where
he lost first he says now i don't know anyone
you know i have read it i get things wrong sometimes sure web coupon that for you in
a second
uh... but overall no was a make it wasn't it wasn't my fault
he said i'll tell you have to understand the complexity of this was orson and we thought
that they would regulate themselves because they had counterparties whether they had she
was goes a lot of money why would they make sure that they have the right deals with goldman
sachs
well they wouldn't because
that's not how they paid their paid on the deals they make whether they
uh... wind up a success or failure we've explain at a hundred times effect alan greenspan either
a didn't know that
or couldn't benefit speaks very very poorly valley respect
that was the civil wars of abyss a come out here pretended it wasn't his fault
is about regulation
naal poor lullabies unsympathetic how could we regulated these guys
how could we have possibly check
to see if they were
had enough capital
of course it was a
that was part and parcel of what you should have done what you should push for which you
may never did
but even worse he comes back around
and twice the buttressed his ideology his world view that he
it made the waxman earlier was wrong annie says well out of the real problems here was
that uh... you know
at any of freddie let got too much los of poor people
so you're coming for the biggest republican bs
and blamed poor people
for the collapse of the backs
okay well you know there's all one of those mortgages and fannie and freddie gave a talk
come on debt is so grotesquely disingenuous
if you heard that half a smart
one-tenth the smartest people claim
you couldn't possibly think that
now how about all those sub-prime mortgages
without all the top thanks mate and that cause there collapsed at work at fannie and freddie
and why they made those in the first place
because of
compensation to it exactly as which again in his testimony
fetuses well you know what it turns out they said his cared more about their short term
conversation than they did about
heating their companies copy
all small
all ours and that's the main problem
and not this is not as of april here was that his second
reason why in class
you know we were so right about the fall of communism and the central planning never ever
works
uh... so that this is we were so right
it was one of creating a lot of money in the rest of the world
and they brought that money in an inflated bubbles in in america by over investing here
uh... after the fall of crimes
kind is it is not the right system but i don't know why he's even bringing that into the
conversation right is absolutely nothing to do with this
when he's trying to discover his ass he kept interest rates so low that's what inflated
the bubble
but he doesn't want take the blame susan's on others at the four guys investors
became interested in america they shouldn't have
we're going to stop ever mess in america now you do proper regulation so that everybody
wins from that investment
in a sensible way not the way that they did it with high risk
now why doubled up everybody's money now it was a
terrible avoidance
of responsibility
but it was really honestly prophetic to watch
now here uh... fillets lead is gonna take them on a little bit
and asking hey should you've been watching for the somethign prices
would that be a pump you know
a place where you can say that was your fault
and he's gonna admitted he got something's wrong
okay let's walk
just under the category books
should have done it
cancer
would you put this all under the category of office
we should have done it
uh... you know heidi
when you've been open government connie when
use design
uh... the issue of retrospectively figuring out what you should have done differently
is a really feudal activity because you can in fact in the real world duit uh... i think
well
chameleon-like spirit has been
in the business i wasn't i was right seventy percent of the time
but i was wrong to thirty percent of the time
and there are no off a lot of mistakes
and twenty one years
so uh...
uh... with with someone who are not sure if it had to put this on the thirty percent category
person which you put this in the thirty
i don't know
behind or certainly part let's do this then uh... and that's to stop at that moment
would you put this the thirty percent had a great things here are a lot idon't know
if this was a lot of things you got long beautiful rivers and were sent
that global economic collapse
not foreseen that not regulating then
but that part of answer in northern like as if he's doing some response but i guess i
was wrong thirty percent of time
the global economic class was up and i'm not really sure you know i'm not sure that anyone
there
but departed and i'd be more
was when he said like in real time unit is we can look back and say i did this or that
wrong anybody did
but a real time you can ever regularly
you can't have a figure out
if some is in iraq
well then you shouldn't have been the top regulator should
you shouldn't have been the guy in charge of the fed
that is so enormously powerful
at at in in a position to check these guys
then we should never hired you for that
is apparently you are so incompetent they use a sign of possible to do the job that
we hired you four
but that does a lot of things in there many other regulators okay
so it was a all agree stamper from respect was
part and parcel disc critical to this
who turned off there's nothing we could have done
hideously wrong now it's just a quick example
of how wrong that is and other ghetto specified is richard bowen
former senior vice president business chief
on writer for city morgue
he was writing notes to the heads of city
and a group including robert rubin who should serve on clinton's
uh... if users treasures actor for clint
who then went to see who could help run
and chuck press whose rising he sent them notes saying this is in block letters huge
letters urgent read immediately
financial issues
and this was
several years before the class it wasn't true thousand six
anne saying or exposure to sub-prime mortgages is insane
it there's an iceberg coming you've got you've gotta get out of this
we're gonna lose all our money
these mortgages are crap why are we even writing these worries why are we in this business
and robert rubin and chuck prince and all those guys sent via richard bone
get the hell out here man were making a lot of bonuses there's this thing collapses
will be fine will be fine
thank respect
head body allen i would not be okay
it looked good photo like at the white joe
killings and the summer travel oracle
whole it will be our audio
people anymore it for prime
who let me let me know nobody thought love
or collapsed
model for the support of some of my did wrong
as if he's like an innocent bystanders if you drive a cab during this
before all this time
while they were taking these trips
heather that you know that alan greenspan
and robert rubin analyze summers the guy who's now of the top economic adviser to brag about
why cover of time magazine
called the committee
to save the world
these guys were supposed to be the top of the top financial geniuses
that's saved the world
see that's why get mad at the media to
letter that marketing bs
letup propaganda they did for them
at the very same time
those guys
were collapsing the world account
gooden who moved to a good week
also a good in separate empowered and all the guys who make money off of it
and all the people were both wouldn't come and see that
and all there's one other guy
uh... hank paulson who's treasures sector for bush
and what cover did he get on newsweek
king henry
who knows all
don't believe the hitman
watch out for the media sometimes especially in print
may have some very good stories
that are important find it for the truth
a lot of times they are grossly misleading