On Thursday October 24, 2008, Congress grilled Alan Greenspan about the latest financial meltdown. Here are some quotes from the Wall Street Journal, Friday October 25, 2008.
On the front page, "Greenspan Admits Errors to Hostile House Panel," by Kara Scannell and Sudeep Reddy.
"Mr. Greenspan maintained that no regulator was smart enough to foresee the 'once in a life-time credit tsunami.'"
"Anticipating such a crisis 'is more than anybody is capable of judging."
Yet the same issue of the WSJ ran an article on page C1, "Paulson & Co. Scores Again This Year," by Gregory Zuckerman, describing how Paul Johnson was able to foresee the tsunami, anticipate the crisis, and profit from it. Last year Mr. Johnson made $3 Billion personally from the meltdown. His hedge fund, Paulson & Co., made $15 Billion last year.
Clearly, Greenspan is lying to us again.