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Alan Greenspan admits mistake with deregulation

Alan Greenspan admits mistake with deregulation

Henry Waxman's Congressional Committee questioned Alan Greenspan, chairman of the Federal Reserve (1987 - 2006) over his role in the financial crisis. It's worth repeating Greenspan's admission: 'I made a mistake in presuming that the self-interest of organizations, specifically banks and others, was such as if they were best capable of protecting their own shareholders'. In an ideal world, we wouldn't need any regulation or laws because we'd all be equally considerate of others as we are of ourselves. But in the real world, we are the product of an evolutionary process. Nothing mysterious, just simple cause and effect. Something that works better for itself, survives better. Self-interest of a bank is not to its shareholders, as you might expect, but to the selfish people who run the bank.

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Guest: (2507 days ago)
You can never underestimate greed and stupidity.
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You can never underestimate greed and stupidity.
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Guest: Argle (2505 days ago)
Latest comment: The real issus is, why bother being careful with your inventors' money? After all, if something goes wrong, the government will bail out everyone, right? In the absence of bailouts, Greenspan would have been vindicated.
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Latest comment: The real issus is, why bother being careful with your inventors' money? After all, if something goes wrong, the government will bail out everyone, right? In the absence of bailouts, Greenspan would have been vindicated.
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Guest: (2505 days ago)
It's not more or less regulation, what meaningless terms! What is needed is moral hazard, when these people do something reckless or inimical to the general welfare they need to suffer for it personally. That is the only thing which will deter them.
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It's not more or less regulation, what meaningless terms! What is needed is moral hazard, when these people do something reckless or inimical to the general welfare they need to suffer for it personally. That is the only thing which will deter them.
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Filmaddict Filmaddict (2507 days ago)
Nothing has changed since the Wall Street crash started the first depression in 1929. People still have their own agenda; to gain riches to enable a certain lifestyle and some more than others will go to any lengths to achieve it, now more than ever (all ethics aside). That was the reason they put regulations in place in the first instance. There is no place for naivety in the banking world, Mr Greenspan!!!
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Original comment
Nothing has changed since the Wall Street crash started the first depression in 1929. People still have their own agenda; to gain riches to enable a certain lifestyle and some more than others will go to any lengths to achieve it, now more than ever (all ethics aside). That was the reason they put regulations in place in the first instance. There is no place for naivety in the banking world, Mr Greenspan!!!
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