It was Alan Greenspan's turn to visit the dungeon of Representative Henry Waxman, the Head Dominatrix of the House Government Oversight Committee, this morning. The former Federal Reserve chairman looked frightened and old as he waited for Waxman to slap his whip across his flaccid white thighs. Metaphorically, we mean. Then he started blubbering:
"The crisis has turned out to be much broader than anything I could have imagined," Greenspan said in his prepared remarks. "Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity (myself especially) are in a state of shocked disbelief."
Waxman was unimpressed. "My question is," he said, "were you wrong?"
“I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms,” Greenspan continued. “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”
“In other words, you found that your view of the world, your ideology, was not right, it was not working,” Waxman said.
"In other words, you are nothing! You are a WORM. That's what I'm going to call you now, WORM. Now get down on your knees and swear your obedience to me, WORM!"*
*Yeah, kidding about that last bit. But he might as well have.
Greenspan Concedes Error on Regulation [NYT]
Greenspan Admits Some Mistakes Amid Grilling by House Lawmakers [WSJ]
Earlier: Intel's coverage of Henry Waxman, House Dominatrix