Greenspan says more banks, institutions may founder

Greenspan says more banks, institutions may founder

news.yahoo.com

LONDON (Reuters) - More banks and financial institutions are likely to face insolvency and need bailouts before the global financial crisis is over, according to former Federal Reserve chairman Alan Greenspan.

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Well, Greenspan should know, he's one of those most responsible for the current situation. As Fed Chairman during the creation of the bubble, he had the abillity to regulate the unsound lending practices and didn't. He kept rates so low for so long that a bubble of epic proportions is just now deflating.

I wonder if Mr. Greenspan is trying to guard his legacy, or is simply serving his new master. Greenie has been in the employ of PIMCO and it's CEO Bill Gross. It is one of if not the largest Bond funds around. I've heard some pretty strong opinions about Gross's bets made about both agency and Treasury Debt.

I've also noticed that Greenie is in the news more lately. Is he selling another book? Talking Gross's book? Defending his legacy? Do ex Fed Chairmen ever die? I've noticed Paul Volker on Obama's economy team.

news.yahoo.com
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[edit on 5-8-2008 by jefwane]

[edit on 5-8-2008 by jefwane]