DAVID HAFFENREFFER, CNN ANCHOR: Federal Reserve Chairman Alan Greenspan says the world must be better prepared for the next international financial crisis. In a speech last night, the Fed chairman said the time is now to get ready. Bill Dorman has more.</s>BILL DORMAN, CNN CORRESPONDENT (voice-over): Three years ago, currency trouble in Thailand spilled into global markets, followed by financial crises in South Korea, Indonesia and elsewhere. Federal Reserve Chairman Alan Greenspan says it is important for global regulators to use today's relative market calm to prepare for the next inevitable emergency.</s>ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: We do not and probably cannot know the precise nature of the next international financial crisis. That there will be one is as certain as the persistence of human financial indiscretion.</s>DORMAN: Managing financial risk is a familiar job to Greenspan's dinner partners, PaineWebber's CEO Donald Marron and insurance giant AIG boss Maurice Greenberg. Part of Greenspan's message, a warning to global investors not to expect financial bailouts.</s>GREENSPAN: That is, if risky investments to emerging market economies, for example, turn out poorly, as risky investments are want to do on occasion, government or international financial institutions should not endeavor to shield investors from loss.</s>DORMAN: Greenspan's recommendations: transparent and liquid financial systems in developing economies, and flexibility for global regulators. For U.S. investors, not even a hint about interest rate policy. Bill Dorman, CNN Financial News, New York.
Greenspan Calls on Global Regulators to Prepare for Next Inevitable Emergency