Greenspan Admits Too Much Faith in Deregulation, Too Little Heed to Reckless Lending

Oct 27th, 2008 • Posted in: News

In related news, many worry that the global economic implosion will hit the poorest people the hardest

VARIOUS DATELINES
The ethical aftereffects of the economic crisis were featured in several world-press reports last week. Among them:

• About three years after stepping down as chairman of the Federal Reserve, Alan Greenspan admitted that he put too much faith in free markets and paid too little attention to the self-destructive effects of reckless lending, reports the New York Times. “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,” he said in testimony before the House Committee on Oversight and Government Reform. While he refused to accept complete blame for the financial meltdown, Greenspan did concede that the exotic and complex financial vehicles that fueled the crisis had gotten out of control.
• The credit crunch that followed the world economic implosion is threatening to undermine ethical improvements made by retailers and suppliers, the U.K. Guardian reports. That warning came at a London conference marking the 10-year anniversary of the Ethical Trading Initiative (ETI) , a movement among retailers, suppliers, trade unions, government representatives, and charitable groups. ETI director Dan Rees said that the current economic climate “threatens gains already made,” according to the Guardian. He implored businesses to be vigilant in protecting workers against low pay and poor conditions. An official of clothing company Gap added that workers in poor nations are the weakest link in the supply chain and feel the pain most quickly and severely when the economy sours.
• United Nations secretary-general Ban Ki-moon says world leaders must help poorer nations through the global financial crisis. The BBC reports that Ban says the crisis could threaten the survival of many of the world’s poorest people. Ban said central banks and the International Monetary Fund may have to set up emergency credit lines for impoverished countries, according to financial news wire RTTNews.com.

Sources: RTTNews.com, Oct. 25 — New York Times, Oct. 24 — BBC, Oct. 24 — Guardian, Oct. 24.

For more information, see: Related Newsline Commentary, Oct. 20 — Related Newsline story, Oct. 20 — Related Newsline story, Oct. 14 — Related Newsline Commentary, Oct. 6 — Related Newsline story, Oct. 6.

 Print This Story  Email This Story

User content does not reflect the views of the Institute for Global Ethics or its affiliates. IGE neither guarantees the truthfulness, accuracy, or reliability of any user content, nor endorses any opinions expressed therein.

One Response »

1. Ethics Newsline® » News » Link Between Economy and Ethics Focus of World-Press Stories on November 24th, 2008 at 8:27 pm:

   [...] see: Related Newsline story, Nov. 17 — Related Newsline story, Nov. 10 — Related Newsline story, Oct. 27 — Related Newsline story, Oct. 20 — Related Newsline story, Sep. 8. [...]

Support Provided By

• Support the Institute for Global Ethics

  

• Categories

  Select Category Book Review Commentary Education Activity Interview Job Posting Letters From Readers News NONE Notice Quote from the Ethics File Research Report Statline Trendlines Weekly Overview What They’re Saying Whatever Happened To

• Monthly Archives

  Select Month March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004 May 2004 April 2004 March 2004 February 2004 January 2004 December 2003 November 2003 October 2003 September 2003 August 2003 July 2003 June 2003 May 2003 April 2003 March 2003 February 2003 January 2003 December 2002 November 2002 October 2002 September 2002 August 2002 July 2002 June 2002 May 2002 April 2002 March 2002 February 2002 January 2002 December 2001 November 2001 October 2001 September 2001 August 2001 July 2001 June 2001 May 2001 April 2001 March 2001 February 2001 January 2001 December 2000 November 2000 October 2000 September 2000 August 2000 July 2000 June 2000 May 2000 April 2000 March 2000 February 2000 January 2000 2000 December 1999 November 1999 October 1999 September 1999 August 1999 July 1999 June 1999 May 1999 April 1999 March 1999 February 1999 January 1999 December 1998 November 1998 October 1998 September 1998 August 1998 July 1998 June 1998 May 1998 April 1998 March 1998 February 1998

• Calendar: Search archives by publication date.

  October 2008

  S	M	T	W	T	F	S
  « Sep				Nov »
  			1	2	3	4
  5	6	7	8	9	10	11
  12	13	14	15	16	17	18
  19	20	21	22	23	24	25
  26	27	28	29	30	31

• Rush Kidder’s New Book! Click book cover to order today.