Alan Greenspan admits failure by kristina leskova

Alan Greenspan, born in 1926 in New York City is an American economist and he was from 1987 to 2006 Chairman of the Federal Reserve in the United States of America. Now he works as a private advisor and provides consultation for firms through his own company Greenspan Associates. He stayed at the position of Chairman almost twenty years that is quite long period. Many people loved him, but many criticized him, too. Many people blamed him that the financial crisis that hit America and other countries in the world is his fault. Greenspan is a believer in free markets and he did not believe in regulation. Alan Greenspan was first nominated on June 2, 1987. After his nomination the bond markets experienced the biggest one-day drop in five years. And he had to face his first crisis – stock market crash in 1987. He was awarded Medal of Freedom which is the highest civilian award in United States by President George Bush in November 2005.
On February 26, 2007 Greenspan forecasted a possible recession during the year 2008. And as we can see he was true. On March 17, 2008 he wrote an article for Financial Times where he pointed that the world will be never able to anticipate the financial problems. There are some opinions that Greenspan triggered the economical crisis, but Alan called this chaos as “one in a century credit tsunami”. Greenspan had to accept that his ideology was not right. He believed that the market works well, but now he can see the impacts of financial crisis. People are still loosing their jobs and companies like Goldman Sachs, Chrysler or Xerox expect to dismiss even more people.


related story: http://news.yahoo.com/s/ap/20081023/ap_on_go_co/financial_meltdown;_ylt=AltB1XYAf25JaOrjusvIm.Os0NUE

by kristina leskova for PocketNews (http://pocketnews.tv)

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