Greenspan Defends Himself

Anyone interested in the debate over the credit crunch should take the time to read Alan Greenspan in the FT this morning. The great man is as lucid as ever. Ever since the credit crunch started people have been queuing up to blame deregulated capital markets. Yet as Greenspan points out the real problem is the tendency of human beings to swing between euphoria and despondency -- and that is true of any economic system. He's certainly right about that. Of course, if he owed up to the fact that his failure to prick the housing bubble in the US was also part of the problem, he might be even more convincing.