Former Federal Reserve Chairman Alan Greenspan testified before Congress on October 23, 2008, calling the credit crisis a "once-in-a century credit tsunami." When pressed by lawmakers, Greenspan conceded he made a mistake by presuming that lenders would protect their finances, admitting he was in a "state of shocked disbelief" by the banking sector crisis.CNN Money: Greenspan: It's a 'credit tsunami' (October 23, 2008) BBC News: Financial crisis 'like a tsunami' (October 23, 2008)
References
Fast Facts
-
Fact:
Greenspan was chairman of the Federal Reserve for 18 years
-
Fact:
Testified before Congress on October 23, 2008
-
Fact:
Greenspan predicted a recovery in the U.S. housing market was "many months" awayBBC News: Financial crisis 'like a tsunami' (October 23, 2008)
-
Fact:
-
Fact:
Congressman Henry Waxman suggested Greenspan contributed to credit crisis by rejecting calls for regulation of the subprime mortgage marketBBC News: Financial crisis 'like a tsunami' (October 23, 2008)
-
Fact:
-
Fact:
