Greenspan suffering dementia: Low Fed rates didn't cause housing bubble

[rfranklin]

Greenspan: Systemic regulator won't stop bubbles

by Rex Nutting WASHINGTON (MarketWatch) -- Putting a new regulator in place to monitor risks to the global financial system won't stop the next crisis, former Federal Reserve Chairman Alan Greenspan says in a new paper simply titled "The Crisis." In Greenspan's view, the best way to prevent asset-price bubbles from growing dangerously large is to limit leverage by increasing the amount of capital that banks and other financial institutions are required to hold and to increase collateral requirements on financial securities. Greenspan disputed accounts that blame the Fed's low interest-rate policy for the housing bubble. Greenspan is to present the paper and discuss it on Friday at the Brookings Institution in Washington.

http://www.marketwatch.com/story/greenspan-systemic-regulator-wont-stop-bubbles-2010-03-18

[RKP5637]

1. Greenspan suffers from lowered self-esteem, and still doing justification. n/t

[no_hypocrisy]

2. That's not dementia. That's mendacity.