Alan Greenspan was a member of Rand's inner circle back in the 1960's. Many have wondered how he came to be the Fed Chairman and why.
In her novel Atlas Shrugged, the main character hears himself sentenced to slavery, for being intelligent. He say: "I will put an end to this. I will stop the motor of the world." Could Alan envision himself as the person who does this?
"Greenspan also adds this revealing bit of information in his article:
The value of equities traded on the world's major stock exchanges has risen to more than $50 trillion, double what it was in 2002. Sharply rising home prices erupted into major housing bubbles world-wide, Japan and Germany (for differing reasons) being the only principal exceptions." ("The Roots of the Mortgage Crisis", Alan Greenspan, Wall Street Journal)
This admission proves Greenspan's culpability. If he knew that stock prices had doubled their value in just 3 years, then he also knew that equities had not risen due to increases in productivity or demand.(market forces) The only reasonable explanation for the asset inflation, therefore, was monetary policy. As his own mentor, Milton Friedman famously stated, "Inflation is always and everywhere a monetary phenomenon". Any capable economist would have known that the explosion in housing and equities prices was a sign of uneven inflation. Now that the bubble has popped, inflation is spreading like mad through the entire economy.
Greenspan is a very sharp man. It is crazy to think he didn't know what was going on."
Alan may have single-handedly created conditions necessary for the collapse of the world-wide system, just like in the novel. Fascinating!!