A two-day hearing of The Financial Crisis Inquiry Commission just began and “The Maestro” is already getting grilled by Sen. Phil Angelides, who wants to know why the Fed didn’t do more to contain abusive lending.
“You could’ve, you should’ve and you didn’t,” Angelides said referring to the Fed’s “reluctance to regulate” even when faced with multiple warning signs about the pending mortgage crisis. “We did [regulate],” Greenspan shot back and then laid some the blame on Congress, which he said failed to pass abusive lending laws the Fed recommended they pass.
Asked if this was an oops, we fucked up moment, Greenspan said:
“I was right 70 percent of the time, but I was wrong 30 percent of the time and there are an awful lot of mistakes in 21 years.” Asked if he would put the subprime crisis in the 30 percent category, the maestro said: “I don’t know.”