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This is a well written book. Greenspan makes complicated topics extremely clear. Although I didnt agree with his conclusions at times, he came across to me as intelligent. Everyone could learn quite a bit about our government and our economy from this book.
I was a Randian for a time. Alan Greenspan describes how he's evolved his views to fit the reality of fiat money in his book "Age of Turbulence" (highly recommended). Alan Greenspan was too, and he studied under her in New York, and co-wrote a book with her. Alan Greenspan's piece that he published with Ayn Rand (Alan has a chapter within Ayn's "Capitalism: The Unknown Ideal") advocated the continuation of the Gold Standard. Though Greenspan is now out of style in some circles, he is the greatest still-living mind that has evolved from the Randian view. So, in reading it, one could see how some of today's talking heads might turn out if they were to ever do some deeper reading, and thereafter spend 20+ years actually trying to make things work.
People are naive in that they listen to words, never check facts and believe the hype. Check out his forecasts through out his tenure and you will see he was the worst. Now that the world economy is in the dumpster you would think that people would wake up to this clown.$13 trillion in GDP for the US and the Derivatives market is now at $600 Trillion. How does that work.More smoke and mirrors from the banking syndicates number one spinner.Helicopter Ben is just as bad.
No one can deny that the first part, the real memoir part, is brilliant. (Lehman did not fold yet when he wrote this update). The best place of course to learn all these is in an economics classroom with a textbook, but if you get the concept at first pass, the illustration flows perfectly into solid learning. The book also tries concisely to explain how FED works in the macro- and microeconomic environment. I think there's a sudden shift of tone, towards a bit of `fedspeak,' on the bonus chapter.
In trying to just pass by some important concepts though with just a quick footnote, the lay man may not fully get some of the `levers,' impact of controlling money supply, the give and take of increasing and decreasing reserves and interests, etc. There is no grandstanding, no self-aggrandizing, very modest. For one, you will understand why it is not possible to do that proverbial "when I become President" idea to eradicate poverty--i.e. Greenspan ought to write another book, even if just to extend this chapter. It's annoying, but everything else in the book is, to say the least, worth your while.
This epilogue is more like saying nothing could have been done, except there should be more enforcement and laws on corporate governance, although he admitted in one of the public hearings already that there is a `flaw' in the system. I think if Mr. Now on the most important part in this paperback edition. it's impossible to just print more and more money to get your country richer and richer.
The writing is sometimes academic, and Greenspan loves to use "to be sure", to have transition between sentences or paragraphs. But overall, this book should be judged on its merit and original intent, regardless whether we blame the person for this crisis or just plain hate or like his past policies on hindsight. There's a typo on page 527. Greenspan has a chance, he would re-write this epilogue. It would be sour if he wrote this with a pure intention to excuse his tenure as having no influence at all to the current crisis. Mr. (I would believe that one of the intention of the author here is to teach and let the public be aware of how, most of all, market economies work). When you read the book, everything is presented with reason and beliefs based on intelligent data and experience.
And the swipes on the personalities that he disagrees with are nothing short of perfect in rationality; and in using a relaxed tone in doing these, the personal hits appear even more effective. The book deserves 5 stars, no doubt. My advise is: if you don't get the thought in one pass, read the sentence/paragraph again to get full learning. Greenspan's opinions on some of the contentious issues of present and future are short and just give options, but on others they are solid like there's no other choice (like in allowing immigration)--so you cant accuse the author of fedspeaking without standing for anything all the way. (I would also buy it).
The real gem in my mind is Greenspan's analysis of the BRIC, South American and EU nations plus their challenges. He makes telling arguments against propping up old manufacturing industries. Buffett went on to be the premier capitalist and Greenspan became a consummate public servant.The history lessons in this book are terrific and give another side to many of the events that Buffett discussed. Reading this book immediately after The Snowball, I was struck by the similarities in world view between Buffett and Greenspan. Good for a back and forth coast to coast plane ride. The US has an education (k-12) , Retirement and unfunded Medicare, Social Security crises ahead of it.
Inflation will return, as will higher oil prises.
Taking his projections and todays' events you see pretty well exactly how things will progress, some of it already.
As well his is the first logical voice that shows the dangers of populism in politics, raising a fear that Obama may get himself into some dreadful morasses.This was an easy to read book.
They both believe in free market capitalism, they are both mathematical wizards and they grew up personally protected from the Great Depression , and yet they followed very different paths.
His analysis of the current meltdown rises above todays' politicizing.
If you are doing business world wide you must read these chapters as well as the McKinsey work (and the Economist stats tables weekly) if you desire to succeed (survive) in these markets.
Greenspan's 40 years at the tiller and numerous interactions at G7 and G20 meetings are invaluable.I believe he is right.
He does mention that learning FedSpeak meant the loss of the use of English until he left.
You will want to savour this one.
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