In this video, the interviewer questions Alan Greenspan, the former chairman of the Federal Reserve for 18 years who worked with four presidents, including Bush, Clinton, Bush, and Reagan, about his role in the 2008 financial crisis. The interviewer questions Greenspan's ideology of free competitive markets and how he had the authority to prevent irresponsible lending practices but didn't listen to others who advised him to do so. Greenspan believed that irrational behavior could not be predicted or analyzed. In hindsight, he thinks he made a mistake by presuming that the banks' self-interest was the best way to protect their shareholders during the crisis.
Former Federal Reserve Chairman Alan Greenspan admits to his ideology's flaws in the decision-making process, leading to negative economic consequences. He explains that everyone has an ideology necessary to exist, but its accuracy depends on its framework's accuracy in dealing with reality. Greenspan found a flaw in his doctrine, which was dominant for over 40 years, that was not working exceptionally well in retrospect. Despite legally having the authority to enact regulations, he admits to not putting them before the Federal Reserve Board, which did not reflect well on the economy.
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