Remember, Greenspan's mentor was Ayn Rand. They are both scary people, though I use that last descriptor 'people' loosely.
And of course only someone not on the left is allowed to get away with such gobbledygook and obscurantism. Here is a guy who really needs to learn some plain English, but if he used it, then people might actually start to understand what he is going on about. One wonders how he might order a steak or return a Christmas present or something. I think moral hazard with banks lies with the stock holders who invested money in the bank or those who buy the banks' bonds. Not depositors. Now we are supposed to shop around for a retail bank, too. I guess we can rely on internal or hired accountants to give us the truth about a bank's condition, right? Ditto with stock issuing insurance companies. I got to experience the opposite when Kyoei went bankrupt. Kyoei demutualized on the advice of Prudential US (in order to survive global competition we were told). Prudential US then became the controlling shareholder in the demutualized Kyoei. Then Kyoei 'went bankrupt' (was forced to declare bankruptcy by its controlling interest, Prudential) and Prudential US got to sell off Kyoei assets for huge profits while it took suckers like me (policyholders learning about moral hazard) for a ride. The way I look at it, Prudential made millions and stole $5000 dollars from me at the same time. Charles Jannuzi
