Yesterday, commenter Gian Paul suggested that Lehman Brothers CEO Richard Fuld is being singled out unfairly as a scapegoat for Wall Street’s woes.
As I noted in my post yesterday, Fuld may be the poster boy for the Street’s greed, but the angry mob may have a bigger fish to fry: Pisces Alan Greenspan, who served as chairman of the Federal Reserve for 18 years.
Greenspan’s tenure (1987-2006) coincided with two bubbles — one in Internet stocks and the other in real estate. The bursting of the real estate bubble is the trigger for the current financial crisis. Here’s Greenspan’s chart, courtesy of Astrodienst.
It’s set for noon on March 6, 1926 in New York because the time of birth is unknown. Interesting that the Father of Easy Money has a generous Venus/Jupiter conjunction in Aquarius broadly opposed by bubble-oriented Neptune in Leo.
As Neptune in Aquarius was transiting his Venus/Jupiter combo in technology-oriented Aquarius, Greenspan became besotted with the idea that tech had created massive improvements in productivity that were not being reported in the official figures. This gave birth to the notion of the New Economy.
Of course, who could blame Greenspan for not recognizing that the Internet would give us new ways to waste time, say by watching Tina Fey’s imitation of Sarah Palin on Saturday Night Live via You Tube? While we’re on that topic, wasn’t Queen Latifah awesome in her spoof of Gwen Ifill?
(BTW, You Tube has taken the Fey debate video down, citing copyright issues by NBC Universal, which airs SNL. Guess we’ll have to do some work today.)
Anyway, I’ve been reading a trenchant indictment of Greenspan by William Fleckenstein called Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve that accuses him of self-delusion in his memoir The Age of Turbulence. Can you imagine: a Pisces guilty of self-delusion?
Other than the house of cards collapsing on Wall Street, what’s behind the attacks on Greenspan’s legacy? Saturn in Virgo is currently opposing his natal Sun.
So what if Greenspan didn’t do his duty as Fed chairman by taking away the proverbial punch bowl before the party got too wild? Well, we’re waking up to a massive hangover, in this case once deferred if Greenspan’s critics are correct in their allegation that he dealt with the bursting of the dot-com bubble by creating another bubble in real estate. So consider it a double-whammy of a hangover.
If you’re interested in this school of thought, check out The Mess That Greenspan Made, a blog that blames the former Fed chairman for just about everything, except perhaps childhood obesity.
Since I wrote this post, The New York Times has published an article questioning Greenspan’s laissez-faire attitude toward derivative instruments. The heat is on.
Sorry, Mr. Greenspan, I think I’m going to file this post under “Fallen Heroes.”