Inyear-old Alan Greenspan wrote a letter to the editor of the New York Times book review section protesting about a hostile review of Rand's novel Atlas Shrugged.
We are idiots, and are caught in this cycle as a collective consciousness…. He refused, trusting the market to weed out bad credit risks. When that happens, blame the new guy, he intimated.
As James Grant has documented in his superb book The Trouble with Prosperity, Greenspan was a careerist and an establishmentarian. Even after learning the details about the derivatives scandals of the mids, Greenspan concluded in a speech at a Fed conference that "there appears to be no need for government regulation of off-exchange derivative transactions between institutional counterparties".
With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers.
Greenspan soon returned to his consultancy, with a strong political network and a reputation as a strict economic conservative.