“Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,” he told the House Committee on Oversight and Government Reform.
I don't doubt that glibertarians in our public discourse will find a way to dismiss this damning admission by Greenspan. For the public writ large though this seems to be a significant development - the modern guru of liassez-fairre capitalism testifying before Congress that his ideology failed the country and contributed directly to our current financial crisis. Most middle and working class Americans understand that the economic policies pushed by the right over the last generation have been a failure. All they need to do is look at the value of their house and their flat paychecks. Still, to hear a capitalist of Greenspan's stature though admit that his ideology has failed is another reminder to voters 12 days before the election that its time to cast the GOP out of power and pull this country back on track.