Critics are blaming Alan Greenspan for today’s financial crisis, but now the former Federal Reserve chief is fighting back.

Greenspan sets the record straight in an exclusive interview.

Part 1

Part 2

What are others saying about Alan Greenspan

Alan Greenspan unfair blame for sub prime crisis…

The Stock Market Crash Of October, 1987

With Recession Fears, Feds Cut Interest Rate

The Federal Reserve cuts a key interest rate by three quarters of a percentage point, hoping to stem fears of a recession in the United States. This is the biggest one day move by the central bank in recent memory.

Federal Reserve chairman Ben Bernanke heads to capitol hill today. He may encourage lawmakers to stimulate the economy.

Bernanke will appear before the house budget committee today. Legislators are set to question the fed chairman on steps to avoid the first recession since 2001. Bernanke may also try to avoid backing away particularly from tax or spending policies. analysts say doing so could earn him criticism from legislators who oppose them, in turn putting the fed’s reputation of independence at risk.

Bernanke may side step moves taken by former fed chairman Alan Greenspan, who said he misjudged the environment when he endorsed tax cuts in 2001.

Alan Greenspan Was Incompetent And Ben Bernanke Only Knows Academics - Not Reality. Barron’s Economics Editor Gene Epstein looks at the Federal Reserve’s role in the housing crisis.

Bush Praises Subprime Mortgage Strategy

President Bush says it is “going to take a while to work through this mortgage bubble,” but that his administration does have a strategy for helping subprime borrowers refinance or restructure their mortgages.

Bush said in a speech on the economy that the Treasury Department has worked with mortgage servicers so borrowers don’t “get pinched as their interest rates reset”. He also noted that the Federal Housing Administration is helping to refinance subprime borrowers and could do more if Congress passes an FHA modernization bill. (The Senate just passed such a bill, which now has to be reconciled with the House version).

Former Federal Reserve Board Chairman Alan Greenspan has suggested that the federal government could provide cash assistance for distressed homeowners who can’t afford their mortgage payments.

Mr. Bush stressed in his speech that he is against bailouts for lenders, speculators, and people who bought a house they couldn’t afford. “But we can mitigate some of the issues, and I’m concerned about people who are credit worthy enough to live in their homes not being able to deal with these resets,” he said.

NEEDHAM, Mass., Sept. 24 /PRNewswire/ — The effect of the subprime mortgage meltdown continues to radiate out across the credit markets. Alan Greenspan, the former Federal Reserve Chairman, stated in recent interviews there is a one in three chance of a US recession. New research from TowerGroup explores the impact on consumer debt and credit cards.

In analyzing four key economic factors that influence both the US economy and consumers’ spending behaviors — unemployment, consumer debt, consumer confidence, and consumer savings — TowerGroup forecasts that even as consumers moderate their spending in the coming months, the number of consumer mortgage delinquencies will continue to rise. Rate relief from federal regulators is only the beginning of the story. Mortgage lenders are likely to bend to public and government pressure to be more flexible when making repayment arrangements with mortgage customers to prevent foreclosure.

OpinionJournal.com’s Brendan Miniter says GOP fiscal policy has been criticized by plenty of other Republicans.

Mortgage Rates on 30 year mortgages rose slightly this week with a fixed rate mortgage average of 6.46%. This rate is up from 6.45% last week. That percentage recorded last week was the lowest since the week of May 31, when 30 year mortgage rates averaged 6.42%. Mortgage rates from one year ago were slightly better with rates hovering at 6.47%.

The lack of movement in the current market relating to 30 year mortgage rates is due to the fact that market expectations were so close to the actual data.