http://afp.google.com/article/ALeqM5gc6qIkuRxSi5OmQHiPSGw_BwGHtQ
LONDON (AFP) — The former Federal Reserve chairman Alan Greenspan suggested here Monday that the global credit crisis triggered in August might be coming to an end.
At a conference on the world economy, British Prime Minister Gordon Brown meanwhile stressed the need for financial reforms that would prevent such a crisis occurring again.
Addressing business leaders, Greenspan said: "Is this ... credit crisis about to be over? Possibly."
The former Fed chief pointed to the re-emergence of trading in risky bonds in the United States as a sign that the global credit squeeze was easing.
He also reiterated his belief that the abrupt upheaval in world financial markets caused by lending woes "was an accident waiting to happen."
Greenspan told business leaders: "If it had not been triggered by the large loss suffered on American securitised sub-prime mortgages, it would have eventually surfaced as a rupture of some other financial product in the market."
Two months ago a credit squeeze emerged when banks around the world began to be reticent about lending to each other.
This was caused by problems in the US housing market, particularly in the "subprime" or high-risk sector, which landed many banks and investment funds with large losses.
LONDON (AFP) — The former Federal Reserve chairman Alan Greenspan suggested here Monday that the global credit crisis triggered in August might be coming to an end.
At a conference on the world economy, British Prime Minister Gordon Brown meanwhile stressed the need for financial reforms that would prevent such a crisis occurring again.
Addressing business leaders, Greenspan said: "Is this ... credit crisis about to be over? Possibly."
The former Fed chief pointed to the re-emergence of trading in risky bonds in the United States as a sign that the global credit squeeze was easing.
He also reiterated his belief that the abrupt upheaval in world financial markets caused by lending woes "was an accident waiting to happen."
Greenspan told business leaders: "If it had not been triggered by the large loss suffered on American securitised sub-prime mortgages, it would have eventually surfaced as a rupture of some other financial product in the market."
Two months ago a credit squeeze emerged when banks around the world began to be reticent about lending to each other.
This was caused by problems in the US housing market, particularly in the "subprime" or high-risk sector, which landed many banks and investment funds with large losses.
