First lets try something between 5 stars and a thumbs down. First, gold stars to Greenspan for a true statement, but only 3 stars for failure to adhere to this ethic; as the "Maestro" he was famous for his control and manipulation of the economy. He even went so far as to admit to Jon Stewart on the Daily Show that we do not truely live in a free market society. I read a lot of comments accusing others of adhering to partisan rehtoric. Regulation isn't bad, and infact is nescesary for peaceful society; the only people who don't think so are anarchists. The question isn't to regulate or not to regulate, but rather HOW to regulate. Adam Smith's idea of regulation is what Greenspan is espousing in this quote; the idea that crooked individules utilizing poor business practices, who are only out to line their own pockets at the EXPENSE of society will fall on their faces eventually, suffering the consequences of their actions. Government plays a role in this by punishing behavior that harms others (financially, physically, etc.) Regulation or no, there will always be scam artists trying to pick your pocket, whether on a busy steet corner, or in the stock market. Bernard Madoff fleaced his clients (marks) for years, perhaps as far back as the 1970's! Madoff was successful even during highly regulated times; why? For the exact reasons layed out by Greenspan here. Corruption exisits in a Capitalist society, not because capitalisim encourages it, but because in every society there are corrupt individules. The problem with institutionalized regulation is that it is people who must enforce. I recomend watching episode one of "Free to Choose" http://www.youtube.com/watch?v=D3N2sNnGwa4