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Bloomberg has a video of an interview/Q&A session (approximately 52 minutes) with Alan Greenspan. Among the topics discussed are housing, equities, moral hazard, and the U.S. dollar.
http://www.bloomberg.com/avp/avp.htm...57PPe2RWlc.asf
I found the following comment from Greenspan regarding bail-outs and moral hazard entertaining:
http://www.bloomberg.com/avp/avp.htm...57PPe2RWlc.asf
I found the following comment from Greenspan regarding bail-outs and moral hazard entertaining:
The truth of the matter is, a successful monetary policy will, of necessity, raise asset prices higher than they would otherwise have been and that holds true for the assets held by prudent investors and those who were very outrageous speculators. There is no way you can support the economy overall without, 'bailing out those who don't deserve to be bailed out.' There is no policy--monetary, fiscal, or other than I am aware of--except having the gendarme go up and take these people off to jail.
I think I'm going to be ill....