A Rare Sighting: Greenspan Admits "I Didn't Really Get It"
Last month, I voiced my disappointment here that Alan Greenspan was unable to admit that he may have played a part in causing the housing bubble; in fact, he appears defiant when the idea is put to him. However, the following video interview shows that he does have the capacity to admit mistakes, and even to do so publicly. In the segment from 0:33 to 1:20 (watch below), he admits that he underestimated the extent to which poor lending practices had become common. Still, the journalist is right to describe this as a "rare admission" and Greenspan goes on to say that there was effectively nothing the Fed could do about these practices.
On a related note, The Economist gave a very favorable review to Greenspan's book, The Age of Turbulence.
Enjoy the footage of the Maestro.