Mr. Mouth, sorry former Fed Chairman Alan Greenspan, has called for tighter regulation of financial companies, not just bank and brokerages, following the market meltdown in toxic assets. In doing so he further distances himself from the last two economic bubbles and collapses which he had a major part in creating as a leading proponent of free market economics. The man simply has no same or hubris and has become nothing more, in my opinion, than a headline grabbing, tout for his own status as the leading sound bite grabber.
“Former Federal Reserve Chairman Alan Greenspan called for tighter regulation of financial companies, distancing himself from the free-market culture that he helped to create.
Firms that bundle loans into securities for sale should be required to keep part of those securities, Greenspan said in prepared testimony to the House Committee on Oversight and Government Reform. Other rules should address fraud and settlement of trades, he said. Greenspan’s office released the text ahead of the hearing scheduled for 10 a.m. in Washington.
The comments contrast with Greenspan’s aversion to increasing financial supervision as Fed chairman from August 1987 to January 2006. He said in a May 2005 speech that “private regulation generally has proved far better at constraining excessive risk-taking than has government regulation.”
