Greenspan admits 'flaw' - Yahoo! News

Our old friend, Alan Greenspan, testified before congress today. Yahoo News has the following quote:

Greenspan, 82, acknowledged under questioning that he had made a "mistake" in believing that banks, operating in their own self-interest, would do what was necessary to protect their shareholders and institutions. Greenspan called that "a flaw in the model ... that defines how the world works."

Greenspan denies blame for crisis, admits 'flaw' - Yahoo! News

Back when I was in the banking business, banks hardly ever committed suicide. And they seldom made loans to people that they suspected might not be able to pay.

This isn't a "flaw in the model", it's a flaw in the people that run things. The cause is greed. Pure, selfish greed, compounded by stupidity.