State of Play: Greenspan’s Mea Culpa
In a congressional hearing today, former Federal Reserve Chairman Alan Greenspan admitted that his flawed economic philosophy contributed to the financial crisis.
The New York Times took perhaps the strongest line against Greenspan, running the headline “Greenspan Concedes Error on Regulation” and pointing to a “serious flaw in his own philosophy” that free markets can be trusted to regulate themselves.
The Washington Post headline was more neutral — “Greenspan: ‘Crisis Broader Than Anything I Could Have Imagined’” — while the Wall Street Journal headline –“Greenspan Admits Some Mistakes Amid Grilling by House Lawmakers” — implies that he cracked under tough interrogation techniques. The Los Angeles Times avoids placing blame, and does not mention any criticism of Greenspan until six paragraphs into its piece.
Here’s a more complete rundown of the coverage:
Greenspan Concedes Error on Regulation (The New York Times)
Greenspan: ‘Crisis Broader Than Anything I Could Have Imagined’ (Washington Post)
Greenspan Admits Some Mistakes Amid Grilling by House Lawmakers (The Wall Street Journal)
Greenspan admits ‘mistake’ that helped crisis (msnbc.com)
Alan Greenspan warns unemployment will rise further (The Los Angeles Times)