More on culprits

Earlier post identified poster boys and other culprits who might be behind the toxicity of our beans. Well, the former probably thought that they would put Obama in his place ; but everyone made nice at the meeting. We still don't know if they learned any lessons. The latter (those responsible) consists of a long list that will be reviewed from time to time. Everyone seems to have forgotten Grasso who is a poster boy for lots of that era just past.

Another issue relates to value assessment, especially the imposition of mark-to-market rules. We'll be looking at that in an economic/engineering framework since the tie has been tightened twixt technology and finance.

For now, let's look at the Fed of he who blinked. The WSJ published an opinion by Greenspan (former head) in which he tried to show that he was not at fault for the housing bubble. You see, plenty have him on the culprit list as the sub-prime thing showed the first quaking which brought down the house of cards.

Yesterday, there were replies to Greenspan's argument. All are insightful. Shelton's ("Loose Money and the Derivative Bubble") take is right on as the gab standard is of prime importance here. Shelton talks about derivatives and their influence. Well, as 7oops7 has argued, this whole discipline has a basis of faulty mathematics. We'll be looking more at that.

Remarks:

11/29/2011 -- Ah, Big Ben helped his friends more than he said, at the time.

02/01/2011 -- The chimera shines.

09/15/2009 -- Lessons, one year after Lehman. Also, Time on culprits.

09/09/2009 -- Alan's reign will be looked at, in time.

03/30/2009 -- Philip Greenspun reviews Greenspan's The age of Turbulence and references Alan's March 11, 2009 article in the WSJ. Greenspun has a proposed economic recovery plan that we'll discuss at some point.

Modified: 11/29/2011