Jon Stewart interviews Alan Greenspan on The Daily Show. Greenspan has been busy promoting his new book, The Age of Turbulence, and has been talking to anyone willing to listen.
Here’s an excerpt from the interview:
Stewart: So they’ve made a choice, we would like to favor those who invest in the stock market and not those who invest in the bank; that helps us.
Greenspan: That’s the way it comes out but that’s not the way to think about it.
Stewart: It seems to me that we favor investment but we don’t favor work. The vast majority of people work and they pay payroll taxes and they use banks. And then there’s this whole other world of hedge funds and short betting and…it seems like craps. And they keep saying, “No no no, don’t worry about it, it’s free market, that’s why we live in much bigger houses. But it really isn’t, it’s the fed, or some other thing, no?”
Greenspan also goes on to admit that quality of forecasting hasn’t improved in the past 50 years and that basically they’re clueless about preventing economic bubbles and human nature is to blame for that!
Anyway, check out the video. It’s pretty good.
Also check out Minyanville’s opinion on the rate cut.