Ownership Society Trickle Down Blues

Greenspan ‘Shocked’ to Find Flaw in Ideology
Former Federal Reserve Chairman Alan Greenspan said he “made a mistake” in believing banks and others would protect their shareholders and own firms’ equity. He was “shocked” to learn of the breakdown in lending standards and risk management at the firms that lead to the current credit crunch.

“I still do not fully understand why it happened and obviously to the extent that I figure where it happened and why I will change my views. If the facts change I will change,” he told the House Oversight Committee.
Rep. Henry Waxman, chairman of the committee, challenged Mr. Greenspan and asked “You found your view of the world…was not right?”
Mr. Greenspan admitted that he “found a flaw” in his ideology and “that’s precisely the reason I was shocked.”
Still, Mr. Greenspan, who pushed in 2000 to let derivatives, including swaps, remain unregulated, said derivatives by and large “are working well.” The exception is credit default swaps, insurance like products that were at the heart of problems at American International Group. He said he has “a serious problem” with them. –Kara Scannell

October 23, 2008 House Oversight Committee hearing featuring testimony from former Federal Reserve chairman Alan Greenspan on the role of regulators leading up the financial crisis had a particularly partisan bent, with lawmakers on both sides of the aisle.

He challenged Greenspan directly on the former Fed chief’s free-market stance, and got Greenspan to admit that he “found a flaw” in his ideology.

Greenspan repeated a common theme that no one saw the crisis coming. “If all those extraordinarily capable people were unable to foresee the development of this critical problem [of securitization], which undoubtedly was the cause of the world problem with respect to mortgage-backed securities, I think we have to ask ourselves, ‘Why is that?’” he said “And the answer is that we’re not smart enough as people. We just cannot see events that far in advance.”

Waxman said,
“Over and over again ideology trumped governments. Our regulators became enablers rather than the enforcers. Their trust in the wisdom of the markets was infinite. The mantra became government regulation is wrong. The market is infallible,”

Obituary for Alan Greenspan, abstruse and obtuse Alan Greenspan was both, he engaged in willful ignorance to promelgate an idology. The Idology, "Greed is Good" and "Capitol of it own nature is very very good no matter what it does." is and has always been a known known while the known unknowns go begging for answers. Well

the Trickle Down Blues
The Ownership Society
Trickle Down Blues

"We think we knew how the world works
We know they know how the world works
We took our eye off the ball, now the known unknowns will frolic
we wanted to defy logic for the next uptick

And now there be a trickle down
trickle down
trickle down
The Ownership Society Trickle down,
Trickling down the crack of each man's ass –– wish you were here
Ron and Nancy for the "get the beast off my back"
It be the Ownership Society Trickle-down Blues

We are liv'in with the big trickle-dowm -------Blues
trickling down
trickles down
T R I C K L E D O W N
with the invisible hand
Alissa Rosenbaum
or as we know her, Ayn Rand
Atlas shrugged at the prospect of giving up the
moral higher ground to lumpin folk.
trickles down
trickle down
whiners whiners, what a bunch of whiners
trickle down: fade to low drum roll.*
What a bunch of whiners
all you livin with the –– Trickle Down Blues
Need to network and schmooze.

*Note: The back up band is crammed with talent.
Phil Gramm AKA William Philip Gramm is the lead drummer & percussionist.
Newt Gingrich and Tom Delay are lead and rhythm guitar,
Horn section is headed up by Bill Clinton. Base, Dick Army
Key board, Condi Rice and Orin Hatch

Ownership Society Trickle-Down
tragedy of the commons

tragedy of the Commons

Ayn Rand condensed:
Magnum Opus of the Trickle Down Blues

Ayn Rand rant: In the in 1949 movie "The Fountainhead" Ayn Rand insisted that the entire speach that Gary Cooper (Howare Roark) delivers covers all the Objectivist tenents. A varitable rant on what Alan Greenspan's embeded into the American Economic System, a Reagan Doctrine laundered through a myriad of players now has come home to roost in a time when moral compases are reeling from radical gravitational mood swings. Objectivist Axiom, Ayn Rand's advocate of reason, rational self-interest, individual rights and free market capitalism forgets to remember there are finite resources and far too many humans to make this work for the betterment of humanity.

"The Fountainhead" (1949)
Howard Roark's Address to the Jury

Judge: The defense may proceed.
Roark: Your Honor, I shall call no witnesses. This will be my testimony and my summation.
Judge: Take the oath.
Court Clerk: Do you swear to tell the truth, the whole truth, and nothing but the truth, so help you God?
Roark: I do.
Thousands of years ago, the first man discovered how to make fire. He was probably burned at the stake he had taught his brothers to light, but he left them a gift they had not conceived, and he lifted darkness off the earth.
Throughout the centuries, there were men who took first steps down new roads, armed with nothing but their own vision. The great creators -- the thinkers, the artists, the scientists, the inventors -- stood alone against the men of their time. Every new thought was opposed; every new invention was denounced. But the men of unborrowed vision went ahead. They fought, they suffered, and they paid. But they won.
No creator was prompted by a desire to please his brothers. His brothers hated the gift he offered.
His truth was his only motive.
His work was his only goal.
His work -- not those who used it.
His creation -- not the benefits others derived from it -- the creation which gave form to his truth.
He held his truth above all things and against all men. He went ahead whether others agreed with him or not, with his integrity as his only banner. He served nothing and no one. He lived for himself. And only by living for himself was he able to achieve the things which are the glory of mankind. Such is the nature of achievement. Man cannot survive except through his mind. He comes on earth unarmed. His brain is his only weapon. But the mind is an attribute of the individual. There is no such thing as a collective brain. The man who thinks must think and act on his own. The reasoning mind cannot work under any form of compulsion. It cannot be subordinated to the needs, opinions, or wishes of others. It is not an object of sacrifice.
The creator stands on his own judgment; the parasite follows the opinions of others.
The creator thinks; the parasite copies.
The creator produces; the parasite loots.
The creator's concern is the conquest of nature; the parasite's concern is the conquest of men.
The creator requires independence. He neither serves nor rules. He deals with men by free exchange and voluntary choice.
The parasite seeks power. He wants to bind all men together in common action and common slavery. He claims that man is only a tool for the use of others -- that he must think as they think, act as they act, and live in selfless, joyless servitude to any need but his own.
Look at history: Everything we have, every great achievement has come from the independent work of some independent mind. Every horror and destruction came from attempts to force men into a herd of brainless, soulless robots -- without personal rights, without person ambition, without will, hope, or dignity.
It is an ancient conflict. It has another name: "The individual against the collective."
Our country, the noblest country in the history of men, was based on the principle of individualism, the principle of man's "inalienable rights." It was a country where a man was free to seek his own happiness, to gain and produce, not to give up and renounce; to prosper, not to starve; to achieve, not to plunder; to hold as his highest possession a sense of his personal value, and as his highest virtue his self-respect.
Look at the results. That is what the collectivists are now asking you to destroy, as much of the earth has been destroyed.
I am an architect. I know what is to come by the principle on which it is built. We are approaching a world in which I cannot permit myself to live. My ideas are my property. They were taken from me by force, by breach of contract. No appeal was left to me.
It was believed that my work belonged to others, to do with as they pleased. They had a claim upon me without my consent -- that it was my duty to serve them without choice or reward.
Now you know why a dynamited Courtland. I designed Courtland. I made it possible. I destroyed it. I agreed to design it for the purpose of it seeing built as I wished. That was the price I set for my work. I was not paid. My building was disfigured at the whim of others who took all the benefits of my work and gave me nothing in return.
I came here to say that I do not recognize anyone's right to one minute of my life, nor to any part of my energy, nor to any achievement of mine -- no matter who makes the claim!
It had to be said: The world is perishing from an orgy of self-sacrificing. I came here to be heard in the name of every man of independence still left in the world. I wanted to state my terms. I do not care to work or live on any others.
My terms are: A man's RIGHT to exist for his own sake.

and he was aquitted of the charge of profligate free-enterprise promiscuity

Again we will state: Everyone knows,
the road to Baghdad leads thru Jerusalem. G.O.K.

Master of probability theory management
Alan Greenspan Speaks
The Oracle of Ayn Rand was seduced by himself but the exponential coumpound of ever higher dividends was confirmation enough.
"Spread the wealth of the Ownership Society."

Accepting an honorary degree from New York University
"Corporate scandals and evidence of fraud and malfeasance notwithstanding, the history of rising standards of living in a world fearful of violence is extraordinary testimony to the resilience of free peoples engaged in commerce."
—December 14, 2005
On international imbalances
"If the currently disturbing drift toward protectionism is contained and markets remain sufficiently flexible, changing terms of trade, interest rates, asset prices, and exchange rates will cause U.S. saving to rise, reducing the need for foreign finance and reversing the trend of the past decade toward increasing reliance on it. If, however, the pernicious drift toward fiscal instability in the United States and elsewhere is not arrested and is compounded by a protectionist reversal of globalization, the adjustment process could be quite painful for the world economy. "
—December 2, 2005
On international imbalances
"If the currently disturbing drift toward protectionism is contained and markets remain sufficiently flexible, changing terms of trade, interest rates, asset prices, and exchange rates will cause U.S. saving to rise, reducing the need for foreign finance and reversing the trend of the past decade toward increasing reliance on it. If, however, the pernicious drift toward fiscal instability in the United States and elsewhere is not arrested and is compounded by a protectionist reversal of globalization, the adjustment process could be quite painful for the world economy. "
—December 2, 2005
On stability and economic growth: The role of the central bank
"Being able to rely on markets to do the heavy lifting of adjustment is an exceptionally valuable policy asset. The impressive performance of the U.S. economy over the past couple of decades, despite shocks that in the past would have surely produced marked economic disruption, offers the clearest evidence of the benefits of increased market flexibility."
—November 14, 2005
On the economic outlook
"The longer-term prospects for the U.S. economy remain favorable. Structural productivity continues to grow at a firm pace, and rebuilding activity following the hurricanes should boost real GDP growth for a while. More uncertainty, however, surrounds the outlook for inflation."
—November 3, 2005
On energy
"Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on.... The effect on growth would have been greater had oil not declined in importance as an input to world economic activity since the 1970s."
—October 17, 2005
On economic flexibility
"In my more than eighteen years at the Federal Reserve, much has surprised me, but nothing more than the remarkable ability of our economy to absorb and recover from the shocks of stock market crashes, credit crunches, terrorism, and hurricanes—blows that would have almost certainly precipitated deep recessions in decades past."
—October 12, 2005
On economic flexibility
"History cautions that extended periods of low concern about credit risk have invariably been followed by reversal, with an attendant fall in the prices of risky assets. Such developments apparently reflect not only market dynamics but also the all-too-evident alternating and infectious bouts of human euphoria and distress and the instability they engender."
—September 27, 2005
On mortgage banking
"The apparent froth in housing markets may have spilled over into mortgage markets. The dramatic increase in the prevalence of interest-only loans, as well as the introduction of other, more-exotic forms of adjustable-rate mortgages, are developments that bear close scrutiny."
—September 26, 2005
On the housing boom
"The housing boom will inevitably simmer down. As part of that process, house turnover will decline from currently historic levels, while home price increases will slow and prices could even decrease. As a consequence, home equity extraction will ease and with it some of the strength in personal consumption expenditures. The estimates of how much differ widely."
—August 27, 2005
Reflections on central banking
"The developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset: the increased flexibility of our economy, which has fostered our extraordinary resilience to shocks."
—August 26, 2005
Monetary policy report to Congress
"Our baseline outlook for the U.S. economy is one of sustained economic growth and contained inflation pressures. In our view, realizing this outcome will require the Federal Reserve to continue to remove monetary accommodation. This generally favorable outlook, however, is attended by some significant uncertainties that warrant careful scrutiny."
—July 20, 2005
Central Bank panel discussion
"After its recent very rapid advance, the hedge fund industry could temporarily shrink, and many wealthy fund managers and investors could become less wealthy. But so long as banks and other lenders to these ventures are managing their credit risks effectively, this necessary adjustment should not pose a threat to financial stability."
—June 6, 2005
On energy
"The effect of the current surge in oil prices, though noticeable, is likely to prove less consequential to economic growth and inflation than in the 1970s."
—May 20, 2005
On Government-Sponsored Enterprises
"Without the needed restrictions on the size of the GSE balance sheets, we put at risk our ability to preserve safe and sound financial markets in the United States, a key ingredient of support for housing."
—May 19, 2005
Commencement address at the Wharton School
"Rules exist to govern behavior, but rules cannot substitute for character.... The true measure of a career is to be able to be content, even proud, that you succeeded through your own endeavors without leaving a trail of casualties in your wake."
—May 15, 2005
On risk transfer and financial stability
"Market participants and policymakers must be aware of the risk-management challenges associated with the use of derivatives to transfer risk, both within the banking system and outside the banking system. And they must take steps to ensure that those challenges are addressed."
—May 5, 2005
On consumer finance
"In this increasingly competitive and complex financial services market, it is essential that consumers acquire the knowledge that will enable them to evaluate products and services from competing providers and determine which best meet their long- and short-term needs."
—April 8, 2005
On regulatory reform of the government-sponsored enterprises
"Without restrictions on the size of [government-sponsored enterprise] balance sheets, we put at risk our ability to preserve safe and sound financial markets in the United States, a key ingredient of support for homeownership."
—April 5, 2005
On the future of the Social Security program and economics of retirement
"Focusing on solvency within the Social Security system, without regard to the broader macroeconomic picture, does not ensure that the real resources to fulfill our commitments will be there.... In addressing Social Security's imbalances, we need to ensure that measures taken now to finance future benefit commitments represent real additions to national saving."
—March 15, 2005
On bank regulation
"To be effective regulators, we must also attempt to balance the burdens imposed on banks with the regulations' success in obtaining the intended benefits and to discover permissible and more-efficient ways of doing so. Because we understand that regulatory changes can be quite costly, we recognize as well the important regulatory responsibility to balance the cost of change with the desired benefits."
—March 11, 2005
On globalization
"We may not be able to usefully determine at what point foreign accumulation of net claims on the United States will slow or even reverse, but it is evident that the greater the degree of international flexibility, the less the risk of a crisis. "
—March 10, 2005
On Adam Smith
"In the broad sweep of history, it is ideas that matter. Indeed, the world is ruled by little else.... The short list of intellectuals who have materially advanced the betterment of civilization unquestionably includes Adam Smith. He is a towering contributor to the development of the modern world."
—February 6, 2005
On the mortgage market and consumer debt
"Debt leverage of all types is often troublesome when one judges the stability of the economy. Should home prices fall, we would have reason to be concerned about mortgage debt; but measures of household financial stress do not, at least to date, appear overly worrisome. "
—October 19, 2004
On monetary policy 25 years after October 1979
"In a democratic society such as ours, the central bank is entrusted by the Congress, and ultimately by the citizenry, with the tremendous responsibility of guarding the purchasing power of money. It is now generally recognized that price stability is a prerequisite for the efficient allocation of resources in our economy and, indeed, for fulfilling our ultimate mandate to promote maximum sustainable employment over time. But the importance of price stability has sometimes been insufficiently appreciated in our central bank's history, and such episodes have had unfortunate consequences."
—October 7, 2004
On banking
"It would be a mistake to conclude... that the only way to succeed in banking is through ever-greater size and diversity. Indeed, better risk management may be the only truly necessary element of success in banking."
—October 5, 2004

At his nomination hearing, 2004
"The Federal Reserve's experiences over the past two decades make it clear that ...uncertainty is not just a pervasive feature of the monetary policy landscape; it is the defining characteristic of that landscape. As a consequence, the conduct of monetary policy in the United States has come to involve, at its core, crucial elements of risk management."
—June 15, 2004

At his morning shaving before the mirror 2008
"For the best of all possible worlds choice is the one force that drives the need to have needs. So many choices -- so many needs, the invisible hand is the best hand for demanding supply –– supplying demand."

On the Unknown 2008
"Unknown knowns are known unknowns that have been forgotten"