Greenspan Shrugged? How Did Ayn Rand Influence Greenspan's Policy

wowOwow:

In other words, Ayn Rand's theory of the "morality of self-interest" exactly parallels Alan Greenspan's testimony today about his now-shaken belief in the ability of "self-interest of lending institutions to protect shareholder's equity."

Early in his career, Alan was an avid Rand acolyte, a frequent guest at the Manhattan salon of the novelist and philosopher, and those who gathered to hear the litanies of like-minded notables were loosely known as "The Collective." It was there that the Rand philosophy of Objectivism was discussed in the context of current events, world markets and religion.

Read the whole story: wowOwow

Comments

[worldtraveller]

Funny.. I also remember her suggesting that in time of crisis gov't would do everything wrong. She got something right.

[Phil Waste]

It is time to cut off the balls of the oil men and do this without their help. We have been screwed for years so they could sell more cars and oil. We have to stand up against them and do what is right for America and Americans.

We won’t have many more chances to do anything to save ourselves. I hate to put so much pressure on you Obama but you really are our last hope for a great country.

I hate to give credit to a conservative but this is the plan that was talked about by Rand when she wrote about Reardon steel.

With a few minor changes it would work. We just can’t let the fat cats get a hold of it or it will be screwed up beyond help.

This is a big project that can only be run by our government just like the moon landing.

You could create a new agency like NASA or even use NASA they could do the job. To bad all the old NASA engineers are gone but we could train new ones. We don’t have to reinvent the wheel here all the technology has been used before all we have to do is adapt it to our needs.

I certainly hope you consider these ideas as we have to do something.

[Phil Waste]

Time to invest in America and Americans

Open letter to Barack Obama campaign.

I have a few suggestions that I would like to share with you.

We have to invest in the infrastructure of America and one way I see that we can do that is start a completely new project that would put thousands of Americans to work across America and create a project that would help Americans and wean us off foreign oil.

What I’m suggesting is a national high speed railroad with dedicated tracks with no crossings to cause accidents. It would not carry freight only passengers.

This railroad would follow highways 10, 20, 40, 80, 5, 95 and so on and would connect with feeder line from large cities.

It would be built with steel made only in America. It would be an American project entirely made in the United States. If we no longer have capacity to make or build a component we will have to restart or begin a new company to do so.

It would not start in one place but in every major city and work both directions from there.

This project would create jobs and provide us with a system that would eliminate the need to import oil.

These high speed trains would be powered with electricity which could be generated solely for the system with new nuclear plants situated throughout the system.

[dhertzfe]

I like your idea, but I have a problem with the nuclear power part. What do we do with the waste? This has been one big issue.

[Phil Waste]

We could store is in Utah in Romney back yard. :)

Just kidding, but we could reprocess it and store the balance that is left over, this is what they do in Europe.

[mrcontinental]

Greenscam KNEW exactly what he was doing. He was following orders from his masters, the trillionaire banker scum who are close to their goal of bringing civilization as we know it to it's knees.

[ndem]

Do people still read Rand? I never liked anything but her first novel, written about a love story in Russia...a­ll the rest is cold and inhuman...­no wonder the banking industry has been influenced by her...brin­g back humanity to the economy and you will add the missing element to the equation..­.all the rest is narcissism and greed!

[Blutus]

Teen agers still read her. Which I think is an indication of her intellectual level.

Then they turn to "Catcher in the Rye". In my day at least.

[bikerdude]

If Greenie was half as smart as some folks think, he would have enjoyed Rand, thought for a minute and then put her objectivism in perspective.

[WorkingClass]

Is that Waxman in the backgorund? It looks like he just sold Greenspan a bridge and they're both happy with the deal.

[darthdarcy]

Greenspan should have been reading Dostoyevsky, not Ayn Rand..!

Then he might have left a legacy of prosperity and doing good for others and humanitarian values, rather than this barren fiscal wasteland of gluttony and ruin..!

Dostoyevsky Greenspan repent and save your soul start with, Crime and Punishment­.., then read
The Idiot..!

[Blutus]

You must have gone to my high school.
When we read C and P in English, it became us vs. them, the "thems" beging
Rand partisans, very much partisans. And they are Republicans today.

Then there was the "Lord of the Rings" crowd.

Oh to be young again and so full of idealism.

And remember, Fyodor wrote two endings to C and P.

[darthdarcy]

You might be right..! LOL..!

[marijam]

The key in Ayn Rand's philosophy is the definition of rational. I think the left and the right have their own ideas of what rational means. For the Democrats, it means regulations. For the right, it means "nanny state". Given this recent meltdown, who is right and who is wrong?

For the record, Ayn Rand did not stand with the conservatives, she thought they were unbelievably irrational.

[bikerdude]

You are right she did not stand with the conservatives. The best idea I got from "Atlas" was when your instincts feel wrong, examine your premises..­..

[Erdgeist]

In a mixed economy, the fuel for the economic engine is rational and innovative capitalism while the oil neccessary to lubricate the engine is feasible socialism.

[marijam]

http://www.latimes.com/news/opinion/commentary/la-oe-rutten25-2008oct25,0,3402305.column

[Bettysdad]

Right wing ideologues say that socialism could never work, because it doesn't take into account the most basic of human traits, greed and self-interest.

Alan Greenspan, a right-wing ideologue, says that what went wrong with his free market theories was that he didn't take into account the role of greed and self interest.

So neither socialism nor laissez-faire capitalism can work because of greed and self interest.

[PT6]

What Greenspan Said:

1. Not smart Enough!
2. If we knew it would get this bad we would have written Mortgage Regulations!
3. Our Math Models were BAD!
4. Could not see WHOLE Picture!
5. We did NOT understand impact of China/Asia!
6. Problem in 2004 to 2006 was not Big Enough to do anything!
7. Believed Market would police/punish itself! Now Know Voluntary Regulations don"t Work!

Greenspan Did:

1. Greenspan lowered Interest rates to "LOWEST IN HISTORY"
2. Greenspan "FLOODED MARKET" with nearly "UNLIMITED CHEAP MONEY"
3. Greenspan ignored Congressional order to write Mortgage Underwriting Standards resulting in "TRICKY MORTGAGES" Wall Street can not evaluate when feed into derivatives

This built the foundation for the Entire Financial Crisis!

[SEQUOIABISON]

I think his worst decision was his wholehearted support for the Bush lopsided Tax cut for the wealthiest among us, a devastating blow to the economy and an invitation to undermine manufacturing in America by shipping jobs overseas where labor was cheaper.

The Greed is Good philosophy of the republicans is coming back to haunt them and has left our country in shambles.

Obama/Biden

[CharlesMac]

This always astounds me. Even when writers claim to be very well acquainted with Rand's work, they miss the most obvious intellectual contradiction of Geenspan's entire career with the Fed.

Ayn Rand considered The Federal Reserve one of the greatest abominations ever created.

She had no problem with the concept of a Central Bank created by the banks to facilitate that private industry. But to give that entity manipulative control over the American monetary system was anathema. A TREMENDOUS threat to her laissez faire capitalism. To her, a horrific concept made worse by its fragmentation from any direct connection to the democratic Republic process.

This stuff is Ayn Rand 101.

And Greenspan would become a major influence and Chair it for 18 years?

Greenspan never got his PhD. He would be granted it in 1977 without thesis or dissertation. That is not in any way to cast dispersions on his qualifications. It is to note that he was Ayn Rand's #1 economic student/re­presentati­ve. It was their discussions, from which Greenspan concluded that the schooling was not in line with his thinking and a waste of time. That's how close they were.

To this day, Greenspan has never publicly resolved the intellectual contradiction of his job at The Fed, with the teachings of Ayn Rand.

The gnarliest supposition being he believed only he could prevent this innate monster from doing its evil.

That's sad.

[WIpatriot]

Indeed it is, and he can't even admit it to himself, CM.

[Pdubya]

Alan believed in the gold standard and was against a Federal Reserve in his early years. Free markets, anti-trust and fraud laws, the whole enchilada. Alan got bought out, sold his soul and became the head of a centralized bank, private and accountable to no one buy his international banking masters. Tinker here, print there, loan here, transfer wealth to the top via lobby, dumping paper into the currency, and buying of most of Congress.

We were faced with the free market trumping the managed market before the bailout. Failure, jail time, bankcruptcy. A chance to cut spending and restore confidence, maybe even a true bailout structed properly - addressing the debt at the same time. No, the banking elite and their foot soldiers wanted more management of the market. Namely, to save the wealth they amassed off of our backs. By corporatism, aka fascism...­which is nothing like Rand wrote about. Now that trillions of non-backed fiat currency is printed into our economy, we will face deflation of our assets, forced sales for the rich to buy up, including the State, and a steady increase towards hyperinflation. A Greater Depression, caused by the never ending prop up of a false monetary policy and governance. The Federal Reserve IS THE ERROR.