Will Greenspan’s Legacy Be as a Master Banker or Master Bankrupter?

He is a “rock of stability” (Wall Street Journal, October 25). “[T]he man with the golden touch” has been practically “deified” and is referred to as one who “can walk on water” (Observer, August 21). He has been called “maestro,” “brilliant,” and the “darling of Wall Street.”

The influential have described him as a “master banker” and even as “the greatest central banker to have ever lived” (Wall Street Journal, October 5).

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Third, the easy-money policies of Mr. Greenspan have led to the creation of multiple bubbles and an economy more and more dependant on rising asset values to fund spending. In the late 1990s, people counted on the technology-stock mania to fund their retirement. Today, it is the refinancing and home equity line of credit boom that has occurred with the housing bubble.