Friday, October 24, 2008

Greenspan concedes errors

In an important footnote to the historic financial shakeup we're having, former Federal Reserve Chairman Alan Greenspan said he was wrong to think banks would act so prudently in their own self-interest that no extra regulation was needed to head off a housing bubble. We had a bubble, of course, and it broke -- with disastrous costs that are still not possible to tabulate. The Washington Post reports well on yesterday's congressional hearing, though I thought they saved the most telling quote for the very end.

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