Former Federal Reserve Chairman Alan Greenspan said the increased rate of default among subprime borrowers was not a fault of the loans, but due “to the securitization of subprime,” reports the Associated Press. “Subprime mortgages were and are risky, but they are worth it,” Greenspan said.
Greenspan also criticized the credit rating agencies and defended central banks and market regulators for performance during the recent credit crisis. “We are not skilled enough in these areas and we shouldn't be expected to,” he said. “It should be with the states’ attorney general and, frankly, it should be beefed up a considerable amount from where it is at this stage,” he said.