We saw crunch looming, says Canada's Dodge

David Dodge, a former governor of the Bank of Canada, has said that central bankers knew that "ridiculous" mortgage-backed securities would precipitate a credit crunch.

Dodge, who left the central bank at the end of January, told the Globe and Mail, a Canadian newspaper, that Alan Greenspan, a former governor of the Federal Reserve, had privately warned for years that a disaster was waiting to happen in the real estate sector. But, according to Dodge, Wall Street and US regulators - of which