>Greenspan admits 'flaw' in ideology
>http://english.aljazeera.net/business/2008/10/20081023161043967668.html

Interesting which of his quotes were focused on in that article and the overall message they interpret from it :o) He did indeed find a flaw, but according to his testimony (I watched it live):

Former Federal Reserve Chairman Alan Greenspan says the current financial crisis has uncovered a flaw in how the free market system works and that has shocked him.

Greenspan told the House Oversight Committee on Thursday that his belief that banks would be more prudent in their lending practices because of the need to protect their stockholders had proven in the latest crisis to be wrong.

...

In his testimony, Greenspan put the blame for the subprime collapse on over-eager investors who did not properly take into account the threats that would be posed once home prices stopped surging upward.

"It was the failure to properly price such risky assets that precipitated the crisis," Greenspan said.


http://ap.google.com/article/ALeqM5jSSJzC1UNusL4eW21xsZ7HJcM8WQD9409R0O4
http://www.nytimes.com/2008/10/24/business/economy/24panel.html?hp

You can watch the his entire testimony before the committee here (cspan always films it and broadcasts it live on tv):
http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=281958-1

It will be interesting to see how it all changes (or if it does) in the future...

I foresee heavy regulation.