by the Sandwichman
Greenspan: "I discovered a flaw in the model that I perceived is the critical functioning structure that defines how the world works."
Ira Steward, 1865: "It is but little more than three [now four and a half] hundred years since everybody believed that the sun revolved around the earth. But Copernicus finally exploded this mistake and proved that the earth goes around the sun; and many have been the cases in which men have been forced to admit that the truth was exactly the reverse of all their past opinions or experiences."
Hey, shit happens.
And that flaw in the model is .... ?
But spelled out without the double-talk we usually get from Greenspan.
Consider Greenspan revitalizing his career with mea culpa appearances on talk shows, writing articles, books, spending an hour with Charlie Rose.
And what of the economists and politicians who were satisfied with the Greenspan model that he now says had a flaw? Will they fall on his sword or say that there was no flaw? In particular, what will John McCain say after earlier saying that on the economy, he has Greenspan to rely on?
In the span of Alan's career, how much green has been lost because of the flaw in his model?
Poor guy. I hope he doesn't have to fall upon his sword.
The Dark Ages were better. Then, he would be exiled to a monastery to pray for our souls.
Maybe the Brookings Institute can be endowed with a cell for him to pray in, suitably dressed in sackcloth?
More likely some think tank Institute will be endowed by a Scaife-like benefactor, I'd bet on Pete Peterson, to employ Greenspan as a resident scholar. He'll come back strong with suggestions on the near end of social security, or some such other flawed expert opinion. He'll probably pull down $250,000 per annum as a reward for his current humility; or, would it be for his past hubris?
Is it surprising that Greg Mankiw has yet to comment on the Greenspan Flaw at his website? Perhaps Greg wants to avoid appearing Rand-y.
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