If you wanted a fundamental principle of self-government it would be: power is held accountable. If you want the prime example of how power is not held accountable in America it would be Alan “Bubbles” Greenspan. Our former pope of finance, who use to keep the financial world breathless waiting for the latest interest rate smoke out of the Fed chimney and landed a nice gig at the global giant bond-house PIMCO, still is a regular in the corporate media making pronouncements. Today, Bloomberg has some thoughts from the Maestro appearance on Meet the Press:
Former Federal Reserve Chairman Alan Greenspan said a U.S. economic recovery is “going to be a slow, trudging thing,” and that he “would get very concerned” if stock prices continue to fall.
A drop in stock prices is “more than a warning sign,” Greenspan said yesterday on NBC’s “Meet the Press” program. “It’s important to remember that equity values, stock prices, are not just paper profits. They actually have a profoundly important impact on economic activity.”
There you have it in a couple sentences. The subjugation of the American economy to Wall Street, led by the Fed. The connection never seemed to be made that it was impossible for the limited numbers of shares on Wall Street to be distributed in any way to make anything close to an equitable economy. Call it Randian economics, or maybe more accurately, randy economics. The first step in reviving the American economy is going to be to loose it from Wall Street’s grip. The first step in doing that is to understand the mechanisms that were put in place and to hold accountable all who led the effort. Until then, its going to be a “trudging thing” indeed, or in the words of another unaccountable person of power, Mr. Rumsfeld, “a slog.”
Joe Costello was communications director for Jerry Brown’s 1992 presidential campaign and was a senior adviser for Howard Dean’s effort in 2004.