Greenspan was asked if he would lower interest rates as dramatically and quickly now as he did just ahead of, during and in the wake of the 2001 recession, according to excerpts of the CBS "60 Minutes" interview released Thursday.
"I'm not sure that's true," he said. "We were dealing with an environment back then when inflation was easing. We could have acted without the fear of stoking inflationary
pressures."
"You can't do that anymore. ... I'm not sure I would have done anything different (if chairman today)," he added.
And we have AG's admission he knew before he left office of the crisis to come which means Bernanke has been in the know all along.
full article http://www.cnbc.com/id/20757448Greenspan said that as Fed chief he knew about questionable lending practices that were leaving subprime borrowers with adjustable rate loans vulnerable to harm from rising interest
rates, but did not recognize those loans would trigger broader problems until fairly recently, CBS said.
"I Didn't Get It"
"While I was aware a lot of these practices were going on, I had no notion of how significant they had become until very late," Greenspan said. "I really didn't get it until very late
in 2005 and 2006."
Edited by zedor, 14 September 2007 - 06:03 AM.