NY times headline: Greenspan Concedes Error on Regulation
...a humbled Mr. Greenspan admitted that he had put too much faith in the self-correcting power of free markets and had failed to anticipate the self-destructive power of wanton mortgage lending.
“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.
Meanwhile, appearing on Bill Moyer's journal, economist James Galbraith said,
"Here in the United States the capacity to handle the crisis exists. What we need is a government that's willing to use that capacity, that believes in it... Regulation is not a burden on business. When it's done properly, it's a framework which favors the more efficient, the more progressive, the more satisfactory elements of business that are prepared to work within the guidelines set by a larger public purpose."
- ► 2011 (18)