Greenspan Weighs In

Alan Greenspan spent decades helping set up the US economy to take a nosedive. And, fortuitously, on the eve of that dive, he decided he needed to retire and spend more time with his family. Bernanke is left holding the bag, while Greenspan writes and spouts little words of financial wisdom.

"The crisis will leave many casualties. Particularly hard hit will be much of today's financial risk-valuation system," he wrote.

[...]

"It will eventually fail and a disturbing reality will be laid bare, prompting an unexpected and sharp discontinuous response," Greenspan said.

He added, however, that he hoped one of the casualties from the worst U.S. financial crisis since World War Two would not be the spirit of broad self-regulation within financial markets.

[...]

"It is important, indeed crucial, that any reforms in, and adjustments to, the structure of markets and regulation not inhibit our most reliable and effective safeguards against cumulative economic failure: market flexibility and open competition," he said.

  Yahoo

Maybe it’s time the old geezer shut up. If the spirit of self-regulation within financial markets were alive, Bear Stearns would have sunk on its own. The Fed wouldn’t have facilitated a taxpayer-backed buyout. Open competition, my ass.

....but hey, do what you want....you will anyway.