Brendan Keenan: Question of blame may miss the point in this situation
Published 28/04/2011 | 05:00
THE former chairman of the US Federal Reserve, Alan Greenspan, liked to study economic data in his bath. From which we can reasonably conclude that he is different from most of us.
That might explain one of his odder comments about the Crash; to the effect that he presumed rational bankers would not wreck their own businesses. As a result, he saw little need for the Fed to tell them, via detailed regulation, how to go about managing those businesses.
Mr Greenspan's comment, as he very well knows, raises an argument that has been at the heart of economics for at least 80 years and maybe -- depending how you look at it -- from the very beginning of modern economic thought.