Former Federal Reserve Chairman Alan Greenspan says the current financial crisis is a "once-in-a-century credit tsunami" which will have a severe impact on the U.S. economy, driving unemployment higher.
Greenspan, who headed the nation's central bank for 18 1/2 years, says in testimony prepared for Congress that he and others who believed lending institutions would do a good job of protecting their shareholders are in a "state of shocked disbelief."
In testimony he was giving to the House Oversight Committee, Greenspan blamed the problems on heavy demand for securities backed by sub-prime mortgages by investors who did not worry that the boom in home prices might come to a crashing halt.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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