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February 06, 2009

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Nate

"I swear - by my life and my love of it - that I will never live for the sake of another man, nor ask another man to live for mine." John Galt, Atlas Shrugged.

That's where the philosophy is headed, expressed through the words of the main character of Atlas Shrugged. Her brand of individualism rejects both God and other forms of community to which one may feel loyalty towards and ... give up individualism for.

I was reminded of her role in contributing to the current financial disaster as I skimmed through "Ayn Rand, the Russian Radical" a book on her philosophical thought, which contained many pictures of her including one with the caption "Members of Rands Inner Circle" which showed second from the left, Alan Greenspan.

Here are some excerpts from a NYT article after Greenspan returned to Capital Hill last fall to answer questions about the disaster. Note Greenspans' use of the term "self-interest".

"Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,” he told the House Committee on Oversight and Government Reform."

“You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,” said Representative Henry A. Waxman of California, chairman of the committee. “Do you feel that your ideology pushed you to make decisions that you wish you had not made?”

Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”

Food for your thoughts. Good discussion.

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