Greenspan's World Model "Flawed", he admits
For future reference, I wanted to note that Alan Greenspan has detected a flaw in his model of how the world works. Ayn Rand will be spinning in her grave!
Accused of contributing to the meltdown, but denying that it was his fault, [former Federal Reserve Chairman Alan] Greenspan told a House panel the crisis left him – an unabashed free-market advocate – in a "state of shocked disbelief."
The longtime Fed chief acknowledged under questioning that he had made a "mistake" in believing that banks in operating in their self-interest would be sufficient to protect their shareholders and the equity in their institutions. Greenspan called it "a flaw in the model that I perceived is the critical functioning structure that defines how the world works."
–Alan Greenspan, 29 October 2008, in remarks to the US House [of Representatives'] Oversight Committee (source)
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on Sunday, 26 October 2008 at 05.02
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Greenspan could just as well have said, I let my ideology drive me over a cliff — taking the world with me.
Or, in terms more familiar where the non-elite meet to eat, My free-market-obsessed head was so far up my conservative Republican ass, I couldn't see where I was going.