Former Federal Reserve Chairman Alan Greenspan uttered the word today that his policies created when he said during an interview with business-cable network CNBC that the US is “in the throes of a recession.”

Greenspan during his tenure as Chairman allowed the housing bubble to flourish through a combination of ultra-low lnterest rates and laissez-fare regulation of financial institutions.

Yet he said during the interview that he has “no regrets” over Fed policy conducted during his tenure and that there was little the central bank or regulators could’ve done to avert the US housing crisis.

Although Wall Street reacted to every word the former Chairman said, many economists believe he was in fact the cause of the current crisis in the real estate market and for the number of bank failures, yet today he declares with apparently little regret that we are in a recession.

He said that the non-financial sector of the US economy remains in “extraordinarily good shape,” although he acknowledged that corporate revenues are shrinking as demand comes under pressure from the ongoing credit crisis.

As for the financial sector, “it’s fairly obvious that for the first time in my memory, we have both the banking system and the securities markets in trouble,” according to CNBC.