Greenspan Joins Hedge Fund that Made Billions Shorting Subprime Derivitives
January 18th, 2008Imagine my shock at the coincidence!
Via: Telegraph:
Alan Greenspan, the 81 year-old former chairman of the Federal Reserve, is set to join the US hedge fund Paulson & C. as an adviser.
Dr Greenspan will advise Paulson on the global financial markets, and under the terms of the agreement he will not advise any other hedge fund while he is working for Paulson.
Paulson manages $28bn of assets and last year earned billions of dollars when it called correctly the collapse in the sub-prime mortgage market, a collapse which was caused by Dr Greenspan who kept interest rates too low for long, according to some economic commentators.
John Paulson, president of the hedge fund, said: “Few people, if any, in the world have the breadth of experience with, and depth of understanding of, global financial markets as Dr. Greenspan.
I came up with a theory the other day when discussing this story with a friend.
Since we know that Greenspan was once a vocal advocate of gold backed commodity money and associate of Ayn Rand, and assuming that he had a good idea how his real estate bubble would play out, was Greenspan’s intent the whole time to destroy the Fed system?
Is he John Galt?