Greenspan keeps it gully

http://www.msnbc.msn.com/id/22425001/vp/27338327#27338327

Former Federal Reserve Chairman Alan Greenspan, describing the current financial crisis as a “once-in-a-century credit tsunami,” acknowledged Thursday that the crisis has exposed flaws in his thinking and in the workings of the free-market system.

As he delivered his comments, in another Capitol hearning, a senior banking regulator told lawmakers the federal government is working on a loan-guarantee plan that could help many homeowners escape foreclosure.

Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the Senate Banking Committee that the government can do more to help tens of thousands of home borrowers avert foreclosure. She suggested the government set standards for modifying mortgages into more affordable loans and providing loan guarantees to banks and other mortgage services that meet them.