Texas Congressman Ron Paul has blasted former Federal Reserve
chairman Alan Greenspan, calling him "intellectually arrogant"
after he blamed free market capitalism for the current financial
crisis and diverted questions away from his own actions.
"I think he's trying to save his place in history
but I don't think he's going to achieve it unless he confesses
and goes back to his roots and goes back to writing articles for
Ayn Rand." Paul told Neil Cavuto on Fox Business yesterday
"There's no way he's going to escape the blame
for this, I guess I am shocked also that he pretends he is shocked
too." Paul, a member of the House Committee on Financial
described the current financial crisis as a "once-in-a-century
credit tsunami" and blamed flaws in the workings of the free-market
system, something he said had left him in a "state of shocked
"What I really resent about it is that he knows
and understood at one time what capitalism was all about. He went
and distorted it," Ron Paul urged.
"Now he says 'this is the death of capitalism
and what we need now are really really good regulations on derivatives.'
No, we need to remove the system that creates derivatives."
Paul asserted that the Federal Reserve chairman,
whoever it may be, does not have the wisdom to regulate monetary
policy because they are driven to excess and are part of an inherently
"In a way they are intellectually arrogant
because they believe that only they know what the market knows.
Nobody knows what the proper rate of interest is, it's always
too high or too low." Paul said
Watch the interview:
The Congressman also made an appearance on CNN this