Alan Greenspan in trouble – When Anna Schwartz speaks

When one of the greatest monetary economist Anna J. Schwartz (92-years-young this year) speaks, you listen and think carefully. So when the “defiantly lucid” Prof. Schwartz had some harsh words in the Sunday Telegraph UK for Alan Greenspan, for his handling of the sub-prime mortgage crisis, I suspect Greenspan listened carefully. [via Gary M C Shiu]

P.S. Wow, Prof. Schwartz “still works every day at the National Bureau of Economic Research in New York, where she has toiled since 1941.” Amazing!

P.P.S. I was fortunate to have a chance to watch the 10-part series “Free to Choose” with Milton Friedman (before they were removed). In one of the episode, Milton talked about the collapse of the Bank of the United States.

P.P.P.S. Quote from above Telegraph article (emphasis mine), “Bernanke insists that the Fed has leant the lesson from the catastrophic errors of the 1930s. At the late Milton Friedman’s 90th birthday party, he apologised for the sins of his institutional forefathers. “Yes, we did it, we’re very sorry, we won’t do it again.”” Lets hope the Fed has learned.

P4.S. What a lovely Anna Schwartz story here as I love giants that are down to earth and are willing to engage with young minds.

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