I can see the error of their ways ... mine?, not so much.

MUMBAI (Reuters) - Banks in the United States need higher capital than they currently have, Alan Greenspan, former chairman of the Federal Reserve told a Mumbai conference via satellite on Monday. (Does this mean that Paulson and PIMPCO are already gaggin' for Stimulus 2.0? -AM)

"I think even in non-euphoria, non-crisis times, we need to have a larger buffer than we currently have," he said. (Mistakes were made. -AM)

Greenspan, who stepped down as Fed chairman in 2006 after 18 years at the helm, said the considerable slack in the world economy suggested the global rate of inflation excluding food and fuel will go down until the early part of next year.(The wizardmaster is confident that the belief in FED magic is strong and that inflation expectations are well anchored. He knows that, for his professional career, the secret sauce of 'enhanced government productivity reporting mixed with overinflated GDP and underreported inflation' has spiced the witches brew of currency debacement that masquerades America's wealth exporting machine and is promulgated by his type as America's resiliency. -AM)

But the massive amounts of liquidity infused into the banking systems by the central banks around the world would fuel inflationary pressures, he said. (As it was so shall it always be. So say we all.-AM)

Unless the central banks defused the large increase in their assets, inflation will begin to pick up, he added.(Are you suggesting now that there is a bomb, you see it and recognize it and, you should do something about it before it explodes? An alcoholic preaching sobriety? -AM)

"It is critical, but it has got to be done and it is not going to be easy to do," Greenspan said. (Do as I say .. not as I did. -AM)

On economic bubbles he said, the critical problem was not about identifying them, but what could be done to deflate these bubbles without hurting the underlying growth.

(And what if the growth itself was just a bubble? And what if the bubble itself was all you thought could create the chimera of growth? Mr. Greenspan please tear down your wail ... and go away.-AM)