The former head of the U.S. central bank, Alan Greenspan, has called
the current financial crisis a "once-in-a-century credit tsunami."
He spoke on Thursday before one of the many
congressional hearings aimed at figuring out what caused the economic
meltdown and how to prevent another one. Greenspan faced criticism and
sharp questioning during the hearing.
He opposed tighter regulation of financial companies during the 18
years he was chairman of the U.S. Federal Reserve. But he now urges
more regulation of financial firms and predicts a rise in layoffs and
At the same time, the head of the government's 700-billion-dollar
financial rescue program told a Senate hearing the administration has
made "tremendous" progress in organizing the huge effort.
also said there have been "signs of improvement" in markets.
Global stock markets posted mixed results in today'strading.
Stock prices in Tokyo, Seoul and Hong Kong were down sharply at the close, while European and U.S. markets were mixed.
Investors have been discouraged recently by a flurry of disappointing earnings reports from major companies.