Saw the end of an interesting progam on PBS last night about Brooksley Born (chair of the Commodity Futures Trading Comission under Clinton. She tried to push for some regulation of the derivatives markets, but was thrashed by Greenspan and his pals, who convinced Clinton that no regulation was the solution.
It was after she'd tried to bring in some regulations that LongTermCapitalManagement crashed (98 - I remember it well, watching the markets drop like a stone). Still, Greenspan convinced everyone that nobody needed to regulate these markets.
It was interesting to see how Greenspan admitted recently that he was wrong in his assumptions that the market would be perfect if allowed to work in the dark.
It was after she'd tried to bring in some regulations that LongTermCapitalManagement crashed (98 - I remember it well, watching the markets drop like a stone). Still, Greenspan convinced everyone that nobody needed to regulate these markets.
It was interesting to see how Greenspan admitted recently that he was wrong in his assumptions that the market would be perfect if allowed to work in the dark.
