Greenspan: It's LTCM and the Bank Panic of 1907 All Over Again
According to this article, Greenspan likens the turmoil in today's markets to that of 1987 and 1998, when LTCM collapsed, and the bank panic of 1907. Yawn. Is it really a surprise to anyone that now that Greenspan is "retired" he has been coming clean on the housing bubble he helped to create?
Former Federal Reserve Chairman Alan Greenspan said the current market turmoil is in many ways "identical" to that which occurred in 1987 and 1998, when the giant hedge fund Long-Term Capital Management nearly collapsed.Thanks Alan, you're a real help.
"The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987, I suspect what we saw in the land-boom collapse of 1837 and certainly [the bank panic of] 1907," Mr. Greenspan told a group of academic economists in Washington, D.C., last night at an event organized by the Brookings Papers on Economic Activity, an academic journal.