By Tom Barnes
Brainsnack: September 7, 2001
(With apologies to Messrs. Voltaire and Kubrick)

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It could well be, at least economically, as Voltaire's famed Metaphysico-theologocosmologo-noodleologian Dr. Pangloss opined, "We live in the best possible of all worlds".

I re-read Candide over my summer vacation and realized Voltaire's words resonate today just like they did over 200 years ago (funny-I guess that's why they call 'em classics). We complain to our friends and drive each other into fits of self-pity that, in turn, drive us to paranoia and fear.

Yet we move on, or die. But those damned insecure feelings still infiltrate our own business and investing. We see panic around us and, we in turn, panic. "How is it possible" we echo Candide's repeated protest "that we could be in the best of all possible worlds"?

Keep in mind we bring all this weirdness on ourselves. First we lied to ourselves believing that technology would work perfectly out-of-the-box. Now we lie to ourselves again-- convinced that technology won't make anyone a plug nickel. Indeed, how could this be the best of all possible worlds?

Now, with stingy heart and steady hand, is Mr. Greenspan a Dr. Pangloss for our times-lamely trying to make sense out of nothing but chaos?

Nope. For all his consistency and apparent certainty, Mr. Greenspan, with all his remarkable power, can have little effect on corporate efficiency. That means, despite his best efforts, he cannot make business more profitable-- even with cheaper money. His job is to call it like he sees it. No one could do significantly better.

Those that call for Greenspan's auto-da-fe betray their short-term memory. The same clowns who now call for his roasted skin ridiculed Greenspan's warning of 'Irrational exuberance'. And while Mr. Greenspan is unlikely to proclaim anything "best", he has maintained a Panglossian consistency in his worldview. Consistency on the part of a central bank is no crime however. As Martin told Candide "There must be some pleasure in never being pleased". If there is, thank God Mr. Greenspan found it.

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