Does Alan Greenspan Deserve Credit For The Dot Com Bubble Too?
from the what-else-can-we-pin-on-him? dept
Over the last few months, there’s been an increasing finger of blame pointed at Alan Greenspan, suggesting that his policies while running the Fed created the housing bubble which recently burst. However, others are going even further. A new book is suggesting not only is Greenspan responsible for the housing bubble, but he should take credit for the dot com bubble as well.
While the book suggests this in a negative manner, as we’ve pointed out for years, bubbles aren’t necessarily a bad thing — except for the people who got swept up in the hype and invested at the wrong time. Historically, bubbles tend to act as a great driver of innovation by getting a lot of innovative ideas thrown against the wall quickly to see what sticks. While bursting bubbles tend to be painful, the “good” things that come out of them tend to be quite important.