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From MSN Money

Alan Greenspan's admission
The market's doldrums came on a day when former Federal Reserve Chairman Alan Greenspan made an extraordinary admission. His free-market ideology shunning regulation was flawed, he told Congress today.

Greenspan told the House Committee on Oversight and Government Reform that he was " partially" wrong in opposing regulation of derivatives -- futures, credit default swaps and various mortgage-based securities that led to the collapse of the housing industry and threatened the foundations of American finance.

And he acknowledged that financial institutions didn't protect shareholders and investments as well as he expected.

Greenspan defended his time as Fed chairman. "In 2005, I raised concerns that the protracted period of underpricing of risk, if history was any guide, would have dire consequences. This crisis, however, has turned out to be much broader than anything I could have imagined.

"The financial landscape that will greet the end of the crisis will be far different from . . . little more than a year ago. Investors, chastened, will be exceptionally cautious," Greenspan said.
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