Thursday, April 8, 2010

Chief economist: 'I was wrong 30% of the time'

From the councils of government to the paneled boardrooms of Wall Street, the idea of Alan Greenspan erring once would have seemed rank heresy. Those days, however, are long gone. Pressed Wednesday to defend his stewardship of the U.S. economy in the years before a massive housing bubble collapsed, the former Fed chairman told a commission investigating the origins of the financial crisis: "In the business I was in, I was right 70% of the time, but I was wrong 30% of the time."

He was wrong 30% of the time? Flipping a coin gets you 50/50.

Remember that the next time the economic experts and politicians tell you something that common sense tells you is untrue, i.e., paying to add 32 million uninsured people to the ranks of the insured will save us billions.

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