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Greenspan admits surprise, dismay at market crisis

October 24, 2008 by  

Greenspan said he was shocked by the credit crisisFormer chairman of the Federal Reserve Alan Greenspan told Congress on Thursday that he was shocked that self-regulation in the financial markets had not functioned the way he anticipated.

At one time, Greenspan – who left the Fed in 2006 after running it for nearly 20 years – was praised for enacting policies that helped stoke the property boom seen earlier this decade.

However, more recently some people have been laying part of the blame for the credit crisis on the chairman’s opposition to regulating the financial markets.

"I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms," Greenspan told the House Committee of Government Oversight and Reform.

However, he explained that his decisions not to regulate risky practices such as credit default swaps was based on a philosophy that had previously worked "exceptionally well."

Other financial leaders testifying before Congress included Christopher Cox, chairman of the Securities and Exchange Commission.

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  • Despoina

    Why do you now DEMAND that OBAMA produce ALL his records  to PROVE he was BORN IN THE USA – from HAWAII, HARVARD, HIS INDONESIAN PASSPORT, COLUMBIA, ETC..?
    OR  ?

  • Bob Livingston

    Alan Greenspan was the world’s central banker.  He destroyed the wealth of nations and their people with paper money.
                Now I want you to read the following quote from Mr. Ben Bernanke, (November 21, 2002), President Bush’s replacement to head up the Federal Reserve at the retirement of Alan Greenspan in January, 2006.  You may take this quote literally as to the fact that the central bank creates an unlimited amount of paper money (credit) at no cost.
                “Like gold, US dollars have value only to the extent that they are strictly limited in supply.  But the US government has a technology, called a printing press (or today, its electronic equivalent), which allows it to produce as many US dollars as it wishes at essentially no cost.  By increasing the number of US dollars in circulation, or even by terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.  We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”
                The federal government, in a symbiotic relationship with the central bank, has a monopoly to print money backed by hot air and police power.
                The Central Bank, creator of money, uses this money to transfer wealth to the federal government corporation without payment, whereas you have to work for this money. –Bob

  • http://WVI Joe Spenner

    Dig into the shadowy connections of all in the top positions of our government since 1913.  This is a random-listing and some internet items that need checking:

    1.  Queen’s Agent/Knight Sir Alan Greenspan defies Congress.
    2.  Knighthood. Swearing the Oath.
    3.  Sir George Bush.   (honor granted to those who (render service to Queen)

    4.  Queen Elizabeth controls and has amended U.S. Social Security.
            (This item has only been mentioned recently and still has to be          completely verified).

    5.  Rock & Roll influence imposed on U.S. culture and promotion of drugs.

    Joe Spenner

  • s c

    What does it take for people to understand? Central banks destroy nations. It has always been that way. This would be a wonderful time for America’s new ‘political saviors’ to grow a spine, and let the guilty feel the full wrath of the law. However, when you have the government in your back pocket, the law has a strange habit of being very ‘flexible.’ Madoff was an easy target. Greenspan’s list of ‘pals’ is much bigger. Americans will foot the bill for Greenspan, Madoff, Congress and the ‘respectable’ criminal culture that corrupted Washington long ago.


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