Alan Greenspan ~ Icon of Wall Street

The icon of Wall Street, and of global corporations, Alan Greenspan, has finally shown the world the results of his gross incompetence. He thought as long as he satisfied Wall Street and the global corporations that he was safe. Wall Street loves low interest rates and American exporters are totally in love with the cheap dollar. Low interest rates, along with an increased money supply, sustained for a year, finally had the effect of the real estate bubble and the cheap dollar. The cheap dollar is relevant to the price of gasoline but nobody seems to be able to tell us how much the cheap dollar is contributing to these high gas prices.

It's hard to think of Alan Greenspan having the imagination to engineer the forced sale of Bear Stearns to J.P. Morgan-Chase, which was orchestrated by Secretary of the Treasury Paulson and Federal Reserve Chairman Bernanke. This is commonly termed a bailout but it is certainly not a bailout in the shareholders' (those who own the company) view - just ask Joseph Lewis, the UK tycoon who lost $1,000,000,000 in this so-called bailout. The stock that once traded at over $100 a share was reduced to just $10.00 in this workout. It's equally difficult to imagine that Alan Greenspan would have the courage of Paul Volcker (Fed chairman from the late 1970's through most of the 1980's), who chose, not by interest rate targets but by reducing the supply of money, to let the market find interest rate levels. Because of this he was able to wring the runaway inflation rate of 12% out of the economy.

Related: Scroll to the bottom of the page to see the Charlie Rose interview with Paul Volcker.

Alan Greenspan Bio ~ the first part of our series

We begin our series on Alan Greenspan with a short bio.

Greenspan was born in 1926 to a Hungarian Jewish family in the Washington Heights area of New York City. He attended The Juilliard School from 1943 to 1944. He then attended New York University (NYU), and received a B.S. in Economics (summa cum laude) in 1948, and a M.A in Economics in 1950. Greenspan went on to Columbia University but subsequently dropped out. At Columbia, Greenspan studied economics under the mentorship of former Fed chairman Arthur Burns (who constantly warned of the dangers of inflation). Many years later, in 1977, NYU awarded him a Ph.D. in Economics. There is some dispute as to whether he wrote a dissertation, normally required for that degree (it appears that he did not). On December 14, 2005, he was awarded an honorary Doctor of Commercial Science from NYU, his fourth degree from that institution.

From 1948 to 1953, Greenspan worked as an economic analyst at The Conference Board, a business and industry oriented think-tank in New York City. From 1955 to 1987, Greenspan was Chairman and President of Townsend-Greenspan & Co., Inc., an economic consulting firm in New York City. He had a brief interruption from 1974 to 1977 by his service as Chairman of the Council of Economic Advisers under President Gerald Ford. In 1968, Richard Nixon asked Greenspan to serve as his coordinator on domestic policy in the nomination campaign and Greenspan agreed. Greenspan also has served as a corporate director for Aluminum Company of America (Alcoa); Automatic Data Processing, Inc.; Capital Cities/ABC, Inc.; General Foods, Inc.; J.P. Morgan & Co., Inc.; Morgan Guaranty Trust Company of New York; Mobil Corporation; and The Pittston Company. He also served as a member of the influential Washington-based financial advisory body, the Group of Thirty in 1984. In 1987 he was appointed as Chairman of the Federal Reserve.

Alan Greenspan has been married twice. His first marriage was to Joan Mitchell in 1952; the marriage ended in divorce one year later in 1953. In 1984, Greenspan began dating journalist Andrea Mitchell. In 1997, they were married by Supreme Court Justice Ruth Bader Ginsburg.

Source: Wikipedia