"Not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient."
Dr. Alan Greenspan said so in 2004.
How wrong he was!!!
Deregulation, was the name of the game, loved so much by Ronald Reagan, who had appointed Dr. Alan Greenspan.
Businesses will be more efficient without Government regulations...
So they thought.
Dr. Greenspan was fiercley opposed to any regulation.
Come 1997 and the Chairwoman of the US Commodity Futures Trading Commission, Ms. Brooksley E. Born had testified before Congress and warned that "unfettered, opaque trading could threaten our regulated markets or, indeed, our economy without any federal agency knowing about it."
She was met with fierce opposition from Dr. Greenspan.
If only they (The Congress and the President) had listened to Ms. Born.
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