Some shocking insights into discussions going on at the Fed. From the Huff Post:
As top Federal Reserve officials debated whether there was a housing
bubble and what to do about it, then-Chairman Alan Greenspan argued that
the dissent should be kept secret so that the Fed wouldn't lose control
of the debate to people less well-informed than themselves.
"We run the risk, by laying out the pros and cons of a particular
argument, of inducing people to join in on the debate, and in this
regard it is possible to lose control of a process that only we fully
understand," Greenspan said, according to the transcripts of a March
This type of condescending elitism was one of the main reasons the economy melted down in the first place. Greenspan clearly did not understand the process 'so well' otherwise he would have recognized the need to regulate mortgage backed securities and prevent people from wild speculations on the housing market. He didn't, and as the head of the Federal Reserve, takes a huge amount of responsibility for the economic crisis that almost brought the entire planet to its knees.