QOTD: Alan Greenspan on Moral Hazard

The ever ironic former Fed Chairman Alan Greenspan on whether government intervention can create moral hazard:

“There were unintended consequences to almost every action I was involved in” as Fed chairman, said Mr. Greenspan, who himself cut interest rates to help stave off a bond-market crisis in 1998, and later was accused of helping inflate the stock bubble of the late 1990s. “If we anticipated the unintended consequences that were going to happen we might have changed the policy,” he said, but he added that it is impossible to forecast all the consequences of government action.

WSJ August 29th, 2011

Please make it stop . . .

Print Friendly, PDF & Email

What's been said:

Discussions found on the web:

Posted Under

Uncategorized