Greenspan Admits Bank Deregulation Was A Mistake
Shocking! Today, Allen Greenspan admitted that the deregulation of banks was a mistake.
From The Associated Press…
From Wonkette…
So here are three major factors that contributed to our country’s world’s current financial misfortunes: prolonged periods of historically low interest rates (even negative real interest rates), the complete deregulation of such derivatives as credit default swaps, and encouragement from Washington that the inflated housing boom was nothing to worry about. It’s rare that you can pin so many large factors on one person, but, well, former Fed chief Alan Greenspan set the low interest rates, led the pressure on Congress to keep derivatives markets wholly deregulated, and was the voice from Washington that said everything was fine.
From Rachel Maddow…
I always felt like Allen Greenspan had some kind of “God Complex” when it came to the economy. I never understood why we gave one guy so much power over our economy (especially, for so long). It now seems obvious, that this was a bad idea.
What do you think? How much blame can be put on Greenspan for our economic crisis? Does he gets points for admitting he made a mistake? Let me know what you think in comments.
