Thursday, October 23, 2008

Greenspan admits he made a "mistake"

The "architect of the 2008 credit crunch" has admitted he made a "mistake":

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.

In the second of two days of tense hearings on Capitol Hill, Henry Waxman, chairman of the House of Representatives, clashed with current and former regulators and with Republicans on his own committee over blame for the financial crisis. [more]
Of course there was never any malicious intend; of course not. Who could know there would be an and to the supply of NINJA loans?

- Financial Times: "I made a mistake"
- Wikipedia: Architect of the 2008 Credit Crunch: Alan Greenspan
- Wikipedia: Why the rich get richer, and the poor get poorer.
- Wikipedia: Ninja loans for all of us

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