GREENSPAN ADMITS HE GOT IT WRONG ON BUSH TAX CUTS

Not all of us got it wrong.

But he was forced to admit that his support for the Bush tax cuts had been a mistake. In 2001 he had mounted the extraordinary argument that budget surpluses were too big and that the US foreign debt would be paid off too quickly.

Under vigorous and often aggressive questioning by Hillary Clinton, Dr Greenspan, looking decidedly uncomfortable, said that, with the benefit of hindsight, he had been mistaken in his view about budget surpluses.

"We were confronted at the time with an almost universal expectation amongst experts that we were dealing with a very large surplus for which there seemed to be no end," he said. "I look back and I would say to you, if confronted with the same evidence we had back then, I would recommend exactly what I recommended then. Turns out we were all wrong".

"Not all of us," snapped Senator Clinton.