What Greenspan Missed

Former Federal Reserve Chairman Alan Greenspan made headlines around the world with this admission: “[T]hose of us who have looked to the self-interest of lending institutions to protect shareholders’ equity (myself especially) are in a state of shocked disbelief. Such counterparty surveillance is a central pillar of our financial markets’ state of balance. If it fails, as occurred this year, market stability is undermined.”

Greenspan made his confession before the House Committee on Oversight and Government Reform....

Now it will be said endlessly, “Even Alan Greenspan concedes that the free-market philosophy is flawed.” But not so fast.

The rest of this week's op-ed is at The Future of Freedom Foundation website.