‘I made a mistake,’ admits Greenspan

Alan Greenspan, the former Federal Reserve chairman, said on Thursday
the credit crisis had exceeded anything he had imagined and admitted
he was wrong to think that banks would protect themselves from
financial market chaos.

“I made a mistake in presuming that the self-interest of
organisations, specifically banks and others, was such that they were
best capable of protecting their own shareholders,” he said.

Mr Waxman said Mr Greenspan’s Federal Reserve – along with the
Securities and Exchange Commission and the US Treasury – had
propagated “the prevailing attitude in Washington... that the market
always knows best.”
http://www.ft.com/cms/s/0/aee9e3a2-a11f-11dd-82fd-000077b07658.html

But see also:

"Fed veteran Greenspan lambasts George W Bush on economy

Former chairman of the Federal Reserve critical of President’s
economic competence in his memoir

Alan Greenspan claims Iraq war was really for oil.
Greenspan on the 'irresponsible' Bush

AMERICA’s elder statesman of finance, Alan Greenspan, has shaken the
White House by declaring that the prime motive for the war in Iraq was
oil.

In his long-awaited memoir, to be published tomorrow, Greenspan, a
Republican whose 18-year tenure as head of the US Federal Reserve was
widely admired, will also deliver a stinging critique of President
George W Bush’s economic policies.

However, it is his view on the motive for the 2003 Iraq invasion that
is likely to provoke the most controversy. “I am saddened that it is
politically inconvenient to acknowledge what everyone knows: the Iraq
war is largely about oil,” he says. "
http://www.timesonline.co.uk/tol/news/world/article2461214.ece



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