Greenspan “shocked” at credit system breakdown

Filed under: Credit Crunch, Economic Outlook — admin @ 1:08 pm

Great article from Reuters on the credit crisis:

By Mark Felsenthal

“WASHINGTON (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.

“Despite concerns he had in 2005 that risks were being underestimated by investors, “this crisis, however, has turned out to be much broader than anything I could have imagined,” Greenspan said in remarks prepared for delivery to the House of Representatives Committee on Oversight and Government Reform.

“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity (myself especially) are in a state of shocked disbelief,” said Greenspan, who stepped down from the Fed in 2006.”

Read the full article:”Greenspan “shocked” at credit system breakdown.”

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