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Long And Deep

As you may know, the Maestro spoke at the Economic Club of New York yesterday, predicting that the present recession would "surely be the longest and deepest" since the one that crafted The Greatest Generation. (I know, I know, they've been insufferable ever since with their long walks to school up hill both ways through gray, dust bowl snow drifts. Now at least we have something to reply with. I mean seriously, you try going on without a flat screen TV after the BMW has been repossessed).

Answering a question after his speech on whether he would have done anything differently during his tenure as Federal Reserve chairman to try and prevent the housing bubble, Greenspan said, "I think it would be desirable to find a way to suppress asset bubbles. But I am skeptical that it can be done."

But the spanner of the green didn't stop there. He also told the Financial Times that bank nationalization may be inevitable. Oh, the humanity!

"It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring," he said. "I understand that once in a hundred years this is what you do."

Recession will be worst since 1930s: Greenspan [Reuters]
Greenspan backs bank nationalisation [The Financial Times]