“We are in the midst of a once-in-a-century credit tsunami.”
— Former Federal Reserve Chairman Alan Greenspan said this in testimony before the House Oversight and Reform Committee this morning. Asked by the committee’s chairman, California Democrat Henry Waxman, whether he made mistakes as Fed Chair, Greenspan replied that he erred in presuming that lenders were more capable than regulators of protecting their finances. Greenspan suggested regulatory changes such as requiring lenders to own or back part of the loans they issue, so as to retain some risk. Click here for the full story.