Greenspan seeking absolution before the crash? Sorry Alan, you've got culpability in this mess.

[marmar]

via Yahoo!:



Greenspan: Tough decisions await in Lehman case
Sunday September 14, 1:20 pm ET
Alan Greenspan sees difficult decisions ahead in trying to arrange rescue of Lehman Brothers


WASHINGTON (AP) -- Without offering a recommendation, former Federal Reserve Chairman Alan Greenspan said Sunday the government faces tough choices as it tries to help arrange a rescue of Lehman Brothers without using public money.

He cautioned that more major U.S. financial institutions may fail in the future, but the government should not protect them all.

The weight of the housing and credit crises, he added, "is in the process of outstripping anything I've seen" and has yet to run its course. "It will continue to be a corrosive force until the price of homes in the United States stabilizes," perhaps next year, he said.

The immediate challenge for the Bush administration is resolving the fate of Lehman Brothers. Global fears intensified over the weekend that Lehman's collapse would stagger markets and undercut confidence in the U.S. financial system. The field of possible buyers has narrowed; how to finance the rescue was the key issue.

Germany's finance minister appealed for a resolution before Asian markets opened Monday, and more discussions involving officials from the Federal Reserve and Treasury Department were expected. ......(more)

The complete piece is at: http://biz.yahoo.com/ap/080914/greenspan.html

[Xipe Totec]

1. Deregulation - the Reagan legacy

let the foxes guard the hen-house.

[dkofos]

2. Culpability?? He was the freakin ARCHITECT.

[indepat]

3. Culpability, he was the freakin' architect even back to the early '80s when lower marginal

rates for the most affluent and much higher payroll taxes for the poor and middle income (Greenspam's baby) were implemented, then Greenspam's answer is to raid Al's lock box/lower social security benefits to fund junior's tax cuts for the the most affluent. Remember you first heard it here: Greenspan, a name which will forevermore live in infamy. :P

[Mesteryo]

4. Greenspan is odd...

He endorsed the Bush tax cuts and policy of low interest rates, and loan deregulation. Then he writes a book criticizing the policies and warning against a housing bubble burst. Thanks Mr. Obvious.