And markets do really weird things sometimes because they react to the way people behave, and sometimes people are a little screwy.”
Alan Greenspan, speaking to Jon Stewart (at 6.20min) on The Daily Show. More quotes from this interview (paraphrased):
- The banks did not fully understand the risks out there.
- We analysts thought the actors would be rational.
- We couldnt believe their (bank's) leverage.
- You cannot tell which are the toxic assets.
- Let banks suffer the consequences, don't let them default.
Alan Greenspan was Chairman of the U.S. Federal Reserve from August 1987 to January 2006. Vancouver has been screwy since the spring of 2005 when commodity markets launched bringing other physical and paper assets along for the ride as private sector investors and government managers abandoned fundamentals.