Greenspan says market turbulence similar to prior crises

0 Comments | AFP, September, 2007

WASHINGTON (AFP) — Former Federal Reserve chairman Alan Greenspan compares the current financial market turbulence to prior crises that have engulfed stock markets and the US economy.

Greenspan, who stepped down as Fed chairman in January 2006, compared the present turmoil to prior crises triggered by hedge fund collapses, excessive land speculation and a bank panic, according to remarks in the Wall Street Journal on Friday.

"The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock market crash of 1987, I suspect what we saw in the land boom collapse of 1837 and certainly (the bank panic of) 1907," Greenspan said late Thursday, according to the online report.

The Journal said...