Post by pieter on Jul 28, 2016 3:15:29 GMT -7
Alan Greenspan
Alan Greenspan (/ˈælᵻn ˈɡriːnspæn/; born March 6, 1926) is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position (behind William McChesney Martin).
Greenspan came to the Federal Reserve Board from a consulting career. Although he was subdued in his public appearances, favorable media coverage raised his profile to a point that several observers likened him to a "rock star". Democratic leaders of Congress criticized him for politicizing his office because of his support for Social Security privatization and tax cuts, which they felt would increase the deficit. The easy-money policies of the Fed during Greenspan's tenure have been suggested by some to be a leading cause of the subprime mortgage crisis, which occurred within a year of his departure from the Fed, and have, said the Wall Street Journal, "tarnished his reputation." Yale economist Robert Shiller argues that "once stocks fell, real estate became the primary outlet for the speculative frenzy that the stock market had unleashed".
Appointed by Pres. Ronald Reagan to fill Paul A. Volcker’s term as chairman of the Federal Reserve Board, Greenspan took office on August 11, 1987. During the years of his chairmanship, Greenspanbecame known for his decisive use of monetary policy in steering the economy between the hazards of inflation and recession . When the Dow Jones Industrial Average fell a record 508 points on October 19, 1987, shortly after he took command at the Fed, he acted quickly to ensure liquidity in the markets. When Asian countries underwent a financial crisis and an economic downturn beginning in 1997, he lowered U.S. interest rates to cushion the economy. As the Asian economies recovered and the U.S. economy continued its solid expansion, he initiated a series of interest rate hikes in June 1999. He also drew the public’s attention to what he called “unsustainable” rates of growth in the U.S. economy and “overextended” stock prices toward the end of the 20th century.
After the Federal Reserve
Immediately after leaving the Fed, Greenspan formed an economic consulting firm, Greenspan Associates LLC. He also accepted an honorary (unpaid) position at HM Treasury in the United Kingdom.
Her Majesty's Treasury (HM Treasury) building in the Horse Guards' Road in the City of Westminster, London. And next to Great George Street, Parliament Street, King Charles Street and Parliament Square.
On February 26, 2007, Greenspan forecast a possible recession in the United States before or in early 2008. Stabilizing corporate profits are said to have influenced his comments. The following day, the Dow Jones Industrial Average decreased by 416 points, losing 3.3% of its value.
In May 2007, Greenspan was hired as a special consultant by Pacific Investment Management Company (PIMCO) to participate in their quarterly economic forums and speak privately with the bond managers about Fed interest rate policy.
In August 2007, Deutsche Bank announced that it would be retaining Greenspan as a senior advisor to its investment banking team and clients.
In mid-January 2008, hedge fund Paulson & Co. hired Greenspan as an adviser. According to the terms of their agreement he was not to advise any other hedge fund while working for Paulson. (In 2007 Paulson had foreseen the collapse of the sub-prime housing market and hired Goldman Sachs to package their sub-prime holdings into derivatives and sell them. Some economic commentators blamed this collapse on Greenspan's policies while at the Fed.)
On April 30, 2009, Greenspan offered a defense of the H-1B visa program, telling a U.S. Senate subcommittee that the visa quota is "far too small to meet the need" and saying that it protects U.S. workers from global competition, creating a "privileged elite". Testifying on immigration reform before the Subcommittee on Immigration, Border Security and Citizenship, he said more skilled immigration was needed "as the economy copes with the forthcoming retirement wave of skilled baby boomers".
In 2011 the bipartisan Financial Crisis Inquiry Commission found that Greenspan’s failure to curtail trade in securities backed by subprime mortgage loans during the U.S. housing bubble of the early 2000s and his advocacy of deregulation of the financial industry had contributed to the global financial crisis of 2008 (see Emergency Economic Stabilization Act of 2008). In The Map and the Territory: Risk, Human Nature, and the Future of Forecasting (2013), Greenspan advanced guidelines for market prognostication in light of the lessons learned from the financial crisis. Though the book mostly constituted a reassertion and recontextualization of Greenspan’s long-held principles, it notably allowed for the greater impact of John Maynard Keynes’s “animal spirits”—essentially human emotion—on market behaviour.
Sources: Encyclopedia Britannica, Wikipedia and youtube
Alan Greenspan (/ˈælᵻn ˈɡriːnspæn/; born March 6, 1926) is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position (behind William McChesney Martin).
Greenspan came to the Federal Reserve Board from a consulting career. Although he was subdued in his public appearances, favorable media coverage raised his profile to a point that several observers likened him to a "rock star". Democratic leaders of Congress criticized him for politicizing his office because of his support for Social Security privatization and tax cuts, which they felt would increase the deficit. The easy-money policies of the Fed during Greenspan's tenure have been suggested by some to be a leading cause of the subprime mortgage crisis, which occurred within a year of his departure from the Fed, and have, said the Wall Street Journal, "tarnished his reputation." Yale economist Robert Shiller argues that "once stocks fell, real estate became the primary outlet for the speculative frenzy that the stock market had unleashed".
Appointed by Pres. Ronald Reagan to fill Paul A. Volcker’s term as chairman of the Federal Reserve Board, Greenspan took office on August 11, 1987. During the years of his chairmanship, Greenspanbecame known for his decisive use of monetary policy in steering the economy between the hazards of inflation and recession . When the Dow Jones Industrial Average fell a record 508 points on October 19, 1987, shortly after he took command at the Fed, he acted quickly to ensure liquidity in the markets. When Asian countries underwent a financial crisis and an economic downturn beginning in 1997, he lowered U.S. interest rates to cushion the economy. As the Asian economies recovered and the U.S. economy continued its solid expansion, he initiated a series of interest rate hikes in June 1999. He also drew the public’s attention to what he called “unsustainable” rates of growth in the U.S. economy and “overextended” stock prices toward the end of the 20th century.
After the Federal Reserve
Immediately after leaving the Fed, Greenspan formed an economic consulting firm, Greenspan Associates LLC. He also accepted an honorary (unpaid) position at HM Treasury in the United Kingdom.
Her Majesty's Treasury (HM Treasury) building in the Horse Guards' Road in the City of Westminster, London. And next to Great George Street, Parliament Street, King Charles Street and Parliament Square.
On February 26, 2007, Greenspan forecast a possible recession in the United States before or in early 2008. Stabilizing corporate profits are said to have influenced his comments. The following day, the Dow Jones Industrial Average decreased by 416 points, losing 3.3% of its value.
In May 2007, Greenspan was hired as a special consultant by Pacific Investment Management Company (PIMCO) to participate in their quarterly economic forums and speak privately with the bond managers about Fed interest rate policy.
In August 2007, Deutsche Bank announced that it would be retaining Greenspan as a senior advisor to its investment banking team and clients.
In mid-January 2008, hedge fund Paulson & Co. hired Greenspan as an adviser. According to the terms of their agreement he was not to advise any other hedge fund while working for Paulson. (In 2007 Paulson had foreseen the collapse of the sub-prime housing market and hired Goldman Sachs to package their sub-prime holdings into derivatives and sell them. Some economic commentators blamed this collapse on Greenspan's policies while at the Fed.)
On April 30, 2009, Greenspan offered a defense of the H-1B visa program, telling a U.S. Senate subcommittee that the visa quota is "far too small to meet the need" and saying that it protects U.S. workers from global competition, creating a "privileged elite". Testifying on immigration reform before the Subcommittee on Immigration, Border Security and Citizenship, he said more skilled immigration was needed "as the economy copes with the forthcoming retirement wave of skilled baby boomers".
In 2011 the bipartisan Financial Crisis Inquiry Commission found that Greenspan’s failure to curtail trade in securities backed by subprime mortgage loans during the U.S. housing bubble of the early 2000s and his advocacy of deregulation of the financial industry had contributed to the global financial crisis of 2008 (see Emergency Economic Stabilization Act of 2008). In The Map and the Territory: Risk, Human Nature, and the Future of Forecasting (2013), Greenspan advanced guidelines for market prognostication in light of the lessons learned from the financial crisis. Though the book mostly constituted a reassertion and recontextualization of Greenspan’s long-held principles, it notably allowed for the greater impact of John Maynard Keynes’s “animal spirits”—essentially human emotion—on market behaviour.
Sources: Encyclopedia Britannica, Wikipedia and youtube