Greenspan: U.S. Will Take Months To Recover
by John Ydstie
All Things Considered, October 23, 2008 · Former Fed Chairman Alan Greenspan told House lawmakers the financial damage done to date means an unavoidable rise in unemployment in the U.S. Greenspan said the U.S. had been hit by a "once-in-a-lifetime credit tsunami" and that it will take many months for the situation to improve.
And when it came to the Crunch, Uncle Alan did not blame Freddie, Fannie or the CRA:
In his testimony, Greenspan put the blame for the subprime collapse on overeager investors who did not properly take into account the threats that would be posed once home prices stopped surging upward.
"It was the failure to properly price such risky assets that precipitated the crisis," he asserted.
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