Alan Greenspan — godfather of the collapse

The NYT takes a look at how St. Alan of Greenspan’s still relentless faith in derivates was a major contributor to the current crash.

Greenspan instead blames Wall Street for, in the article’s words, not acting “honorably”enough in the use of derivatives?

What, was someone’s pinky not lifted away from the teacup on a $2 trillion credit default swap?

Or, in his own words:

“In a market system based on trust, reputation has a significant economic value,” Mr. Greenspan told the audience. “I am therefore distressed at how far we have let concerns for reputation slip in recent years.”

And to think Democrats and Republicans alike kissed his ass for better than a decade. And, while GOP attack ads are somewhat off base, yes, to some degree that does include you, Chris Dodd, and you, Barney Frank, and of course the not-too-lamented Slick Willie, via Robert Rubin and Larry Summers.

And, that’s why many Democrats and Republicans alike insisted “we don’t have time” to tie regulation to the bailout.

None of this is to ignore Phil Gramm, of course, the worst of the lot.

But, many Democrats as well as Republicans are being disingenuous right now.

I guess that’s why a website like Open Left is a disappointment and I don’t go there more. Sure, Chris Bowers et al will take a fair number of individual Dems to the woodshed. But, they don’t look beyond the system as it now stands to talk about promoting third parties, etc.