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Greenspan Calls Crisis a "Credit Tsunami"

Greenspan Calls Crisis a "Credit Tsunami"

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Greenspan Calls Crisis a "Credit Tsunami" Greenspan told the House Oversight Committee on Thursday that his belief that banks would be more prudent in their lending practices because of the need to protect their stockholders had proved to be wrong. Greenspan said he had made a "mistake" in believing that banks operating in their self-interest would be enough to protect their shareholders and the equity in their institutions. Greenspan said that he had found "a flaw in the model that I perceived is the critical functioning structure that defines how the world works."

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deep9 deep9 8 years
What he said was that HE BLAMES HIMSELF. That's what he means by he "found a flaw" in his understanding of how things work. The real problem is that market economics is a religion with these guys, so they forget what they learned in econ101 -- markets crash and/or poison you whenever government steps away. The classic example is that markets can't keep arsenic out of your food unless someone forces producers to tell you if they put it in there.
deep9 deep9 8 years
What he said was that HE BLAMES HIMSELF. That's what he means by he "found a flaw" in his understanding of how things work. The real problem is that market economics is a religion with these guys, so they forget what they learned in econ101 -- markets crash and/or poison you whenever government steps away. The classic example is that markets can't keep arsenic out of your food unless someone forces producers to tell you if they put it in there.
CHOOCHOO CHOOCHOO 8 years
So, he doesn't blame himself in the least? Oh.
stephley stephley 8 years
As old as he is, Greenspan is just now learning there's greed and gambling in this world?
kastarte2 kastarte2 8 years
Although "credit tsunami" is a fun phrase.
organicsugr organicsugr 8 years
I can't believe an ex-chairman of the Fed thinks that the government needs to step in and inhibit the free market! Yes, a boom and bust in the business cycle proves that the free market doesn't work. Give me a break.
organicsugr organicsugr 8 years
I can't believe an ex-chairman of the Fed thinks that the government needs to step in and inhibit the free market!Yes, a boom and bust in the business cycle proves that the free market doesn't work. Give me a break.
Michelann Michelann 8 years
Greenspan, you may be an intelligent man, but you'll never be able to outsmart the market. You need to stop trying, and tell your buddy Bernanke to do the same.
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