Thursday, October 23, 2008

Greenspan ''shocked'' at credit system breakdown

WASHINGTON (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is ''shocked'' at the breakdown in U.S. credit markets and said he was ''partially'' wrong to resist regulation of some...The House is trying to pin blame. It's politically convenient to lay the blame on Greenspan, but his primary responsibilities as Fed Chairman were price stability and money supply. The rate at which the fed sets interest rates is only a tool to exercise its role. Shouldn't the banks that used crappy underwriting standards and rewarded short term commissions (paying mortage brokers fat commissions on toxic loans) bear most of the blame?

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