Alan Greenspan Was Wrong About One Big Thing

Whatever else, Alan Greenspan should be remembered for what is surely the rarest virtue among public officials: admitting error.

The moment was Oct. 23, 2008. The American financial system was in tatters. Bear Stearns and Lehman Brothers were bust, and the government had taken equity stakes in private banks in a bid to arrest the crisis. Americans were swamped with mortgage debt and suffering through a brutal recession.

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