Alan Greenspan admits Congress bullied Fed to keep interest rates low.
“If the Fed as a regulator had tried to thwart what everyone perceived as a fairly broad consensus that the trend was in the right direction, homeownership was rising and that was an unmitigated good, then Congress would have clamped down on us,” he told a questioner at a congressionally appointed commission investigating the financial crisis.
“There’s a presumption that the Federal Reserve’s an independent agency, and it is up to a point, but we are a creature of the Congress and if … we had said we’re running into a bubble and we need to retrench, the Congress would say ‘we haven’t a clue what you’re talking about’,” Greenspan said.
Greenspan shouldn’t feel alone. Congress feel that they are the only ones who knows what they’re talking about. After all, not too many doctors were consulted on the Patient Protection and Affordable Care Act.*
*That’s Obamacare, you fools!!