Greenspan’s flawed trust

Greenspan

Alan Greenspan
Courtesy of Light and Liberty

From this article in the NYT:

In his Georgetown speech, he entertained no talk of regulation,
describing the financial turmoil as the failure of Wall Street to
behave honorably.

“In a market system based on trust,
reputation has a significant economic value,” Mr. Greenspan told the
audience. “I am therefore distressed at how far we have let concerns
for reputation slip in recent years.”

Greenspan’s excuse baffles me, a Fed chairman expecting futures traders –or any kind, for that matter–  to act with honor?? Are we all supposed to go home quietly now, knowing that regulation on uncovered CDS debts worth $55 Trillion was not imposed because of… honor amongst traders??

Reality is so much more interesting than fiction.