Bruce Bartlett of the National Center for Policy Analysis sends along this paper published by the International Monetary Fund. Bruce says, “This paper says that the odds of a stock market bubble ending in a bust on its own are low, suggesting that the Fed’s effort to prick the bubble was ill considered. That’s classic Bruce: tactful and circumspect. I would have said: “This paper shows that Alan Greenspan’s jihad against so-called ‘irrational exuberance’ trashed the American economy on a personal whim, without theoretical foundation and for no good reason — and to add insult to injury, now Greenspan claims he didn’t do it!” I guess I just don’t have the high-level approach.
