Alan Greenspan Partially Admits he was Wrong

On October 23 Alan Greenspan testified before Congress. Dr. Greenspan was the chairman of the Federal Reserve from 1987 to 2006.

Although not fully taking the blame for the current crisis, he says that he was aware of the practices of sub-prime lenders but had "no notion of how significant the problem was."

Alan Greenspan was a champion of deregulation. Because he was so respected and powerful, it was difficult to question him. As we know, John McCain was a champion of deregulation too and was aligned with Phil Graham who was also a champion of deregulation.

In contrast, Barack Obama has always believed that some regulation and oversight was needed to prevent unethical behavior on Wall Street.

Dr. Paul Krugman who has just won the Nobel Prize in Economics has been critical of deregulation and has said "let's praise Alan Greenspan for admitting that he got something wrong." Paul Krugman has endorsed Barack Obama.