Thursday, October 23, 2008
Former Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is “shocked” at the breakdown in U.S. credit markets and that he sees more layoffs and a jump in unemployment ahead.
In prepared testimony, Greenspan said the current global financial crisis is a “once in a century credit tsunami” that policymakers did not anticipate.
Greenspan was to be the leadoff witness at a House hearing lawmakers called to question past key financial players about what they felt caused the most grave financial crisis since the 1930s.
The witnesses were also expected to be asked how they thought the government would deliver the nation from the economic turmoil.
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Greenspan was the chairman of the Federal Reserve for 18 1/2 years. In testimony prepared for the House Government Oversight and Reform Committee, he voiced shock over the present turn of events and called conditions deplorable.