The Loser List

The latest issue of Time features a cover story entitled “The Top 10 Everything 2008,” “a comprehensive look back at the year through a collection of serious and not-so-serious Top 10 lists.”

Among the lists included is “The Top 10 Financial Collapses,” which, to the magazine’s credit, includes the following item:

9. Greenspan’s Reputation

The Ayn Rand enthusiast was nearly branded the God of Money. As Fed Chairman, his easy money policy after the dotcom collapse in 2000 seemed like the perfect policy prescription for what ailed us. And it was. Until the chairman refused to do what Fed Chairmen are supposed to: take away the punch bowl just when the party’s getting good. By not raising rates quickly enough in a real estate bubble, Easy Al helped let the money flow to every high-risk, no document loan applicant extant. The former Fed Chairman was forced to admit that he was completely wrong about the risks in the system from subprime mortgages and the bonds sold against them. The man famous for his expository obfuscation was forced to admit: I screwed up.

The only thing wrong with this description, of course, is that ”The Maestro” screwed things up throughout his tenure at the Fed. Still, you’ve got to give Time some credit for recognizing what many in the media still haven’t quite figured out.

For those who are interested, here are the other nine items on the list:

1. Losing Lehman
2. AIG’s Credit Default Swaps
3. The Detroit Three
4. The Citigroup Colossus
5. Freddie Mac and Fannie Mae Shareholders
6. Supposedly “Safe” Securities
7. Rating Agencies’ Credibility
8. Exploding Hedge Funds
10. Iceland Goes Belly Up

Any other suggestions?

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Comment by jlounsbury59

2008-12-15 16:15:44

Isn’t it written “Thou shalt not worship false gods”?

And also, “‘Vengence is mine’, saith the Lord.”

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