Monday, March 17, 2008


Alan Greenspan has a very interesting and insightful article in the Financial Times on the current economic turmoil.  The piece is plainly written (by Greenspan's standards), and if you want to understand the state of financial markets right now, how they got that way, and when conditions will improve it's a must read.  Moreover, the final paragraph reminds us of something we need to be reminded of in a time of quasi-panic:

In the current crisis, as in past crises, we can learn much, and policy in the future will be informed by these lessons. But we cannot hope to anticipate the specifics of future crises with any degree of confidence. Thus it is important, indeed crucial, that any reforms in, and adjustments to, the structure of markets and regulation not inhibit our most reliable and effective safeguards against cumulative economic failure: market flexibility and open competition.

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