Alan Greenspan – Wikipedia

13th chair of the US Federal Reserve ( hold 1926 )

Alan Greenspan ( born March 6, 1926 ) is an american english economist who served as the 13th chair of the Federal Reserve from 1987 to 2006. He works as a private adviser and provides consulting for firms through his party, Greenspan Associates LLC. First nominated to the Federal Reserve by President Ronald Reagan in August 1987, he was reappointed at consecutive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the placement ( behind William McChesney Martin ). [ 1 ] President George W. Bush appointed Ben Bernanke as his successor. Greenspan came to the Federal Reserve Board from a consulting career. Although he was subdued in his public appearances, favorable media coverage raised his visibility to a point that respective observers likened him to a “ rock star topology ”. [ 2 ] [ 3 ] [ 4 ] democratic leaders of Congress criticized him for politicizing his office because of his support for Social Security denationalization [ 5 ] [ 6 ] and tax cuts. [ 7 ] many have argued that the “ easy-money ” policies of the Fed during Greenspan ‘s tenure, including the practice known as the “ Greenspan put “, were a lead causal agent of the dot-com bubble and subprime mortgage crisis ( the latter occurring within a class of his leaving the Fed ), which, said The Wall Street Journal, “ tarnished his reputation ”. [ 8 ] [ 9 ] Yale economist Robert Shiller argues that “ once stocks fell, real estate of the realm became the primary wall socket for the notional craze that the stock commercialize had unleashed ”. [ 10 ] Greenspan argues that the housing bubble was not a resultant role of low-interest short-run rates but preferably a cosmopolitan phenomenon caused by the progressive decline in long-run interest rates – a direct consequence of the relationship between high savings rates in the develop universe and its inverse in the develop world.

early life and education [edit ]

Greenspan was born in the Washington Heights area of New York City. His forefather, Herbert Greenspan, was of romanian jewish origin, and his mother, Rose Goldsmith, was of hungarian jewish lineage. After his parents divorced, Greenspan grew up with his mother in the family of his maternal grandparents who were born in Russia. His don worked as a stockbroker and adviser in New York City. Greenspan attended George Washington High School from 1940 until he graduated in June 1943, where one of his classmates was John Kemeny. He played clarinet and sax along with Stan Getz. He further studied clarinet at the Juilliard School from 1943 to 1944. Among his bandmates in the Woody Herman band was Leonard Garment, Richard Nixon ‘s special rede. In 1945, Greenspan attended New York University ‘s Stern School of Business, where he earned a B.A. degree in economics summa cum laude in 1948 and an M.A. degree in economics in 1950. At Columbia University, he pursued advanced economic studies under Arthur Burns but withdrew because of his increasing work demand at Townsend-Greenspan & Company. In 1977, Greenspan obtained a Ph.D. in economics from New York University. His dissertation is not available from the university [ 19 ] since it was removed at Greenspan ‘s request in 1987, when he became chair of the Federal Reserve Board. In April 2008, however, Barron’s obtained a copy and notes that it includes “ a discussion of soaring house prices and their effect on consumer outgo ; it even anticipates a bursting house bubble ”. [ 20 ]

career [edit ]

Before the Federal Reserve [edit ]

During his economics studies at New York University, Greenspan worked under Eugene Banks, a managing director at the Wall Street investment bank Brown Brothers Harriman, in the tauten ‘s fairness inquiry department. From 1948 to 1953, Greenspan worked as an analyst at the National Industrial Conference Board ( presently known as the Conference Board ), a business- and industry-oriented think tank in New York City. Before he was appointed president of the Federal Reserve, from 1955 to 1987, Greenspan was chair and president of Townsend-Greenspan & Co., Inc., an economics consulting firm in New York City. His 32-year least sandpiper there was interrupted alone from 1974 to 1977, when he served as president of the Council of Economic Advisers, under President Gerald Ford. [ 23 ] In mid-1968, Greenspan agreed to serve as Richard Nixon ‘s coordinator on domestic policy in the nomination campaign. [ 24 ] Greenspan has besides served as a bodied director for Aluminum Company of America ( Alcoa ) ; Automatic Data Processing ; Capital Cities/ABC, Inc. ; General Foods ; J.P. Morgan & Co. ; Morgan Guaranty Trust Company ; Mobil Corporation ; and the Pittston Company. [ 25 ] [ 26 ] He was a director of the Council on Foreign Relations foreign policy constitution between 1982 and 1988. [ 27 ] He besides served as a extremity of the influential Washington-based fiscal advisory body, the Group of Thirty in 1984. [ citation needed ]

Chairman of the Federal Reserve [edit ]

What I’ve learned at the Federal Reserve is a new language which is called “Fed-speak”. You soon learn to mumble with great incoherence.
— Alan Greenspan[28]

Alan Greenspan in 2005 On June 2, 1987, President Ronald Reagan nominated Greenspan as a successor to Paul Volcker, as chair of the Board of Governors of the Federal Reserve, and the Senate confirmed him on August 11, 1987. [ 29 ] Investor, author and observer Jim Rogers has said that Greenspan lobbied to get this chairmanship. [ 30 ] Two months after his confirmation, Greenspan said immediately following the 1987 neckcloth market crash that the Fed “ affirmed nowadays its readiness to serve as a source of liquid to support the economic and fiscal organization ”. [ 31 ] [ 32 ] [ 33 ] Although the Federal Reserve followed its announcement with monetary policy actions, which became known as the Greenspan put, George H. W. Bush attributed his re-election loss to a inert reception. democratic president Bill Clinton reappointed Greenspan, and consulted him on economic matters. Greenspan lend support to Clinton ‘s 1993 deficit reduction plan. [ 34 ] Greenspan was basically monetarist in orientation course on the economy, and his monetary policy decisions largely followed standard Taylor rule prescriptions ( see Taylor 1993 and 1999 ). Greenspan besides played a cardinal role in organizing the U.S. bailout of Mexico during the 1994–1995 Mexican cuban peso crisis. [ 35 ] In 2000, Greenspan raised interest rates respective times ; these actions were believed by many to have caused the burst of the dot-com house of cards. According to Nobel laureate Paul Krugman, however, “ he did n’t raise interest rates to curb the market ‘s enthusiasm ; he did n’t evening seek to impose margin requirements on stock grocery store investors. alternatively, he waited until the bubble burst, as it did in 2000, then tried to clean up the mess subsequently ”. [ 36 ] E. Ray Canterbery agrees with Krugman ‘s criticism. [ 37 ] In January 2001, Greenspan, in support of President Bush ‘s nominate tax decrease, stated that the union excess could accommodate a significant tax cut while paying down the national debt. [ 38 ] In fall 2001, as a decisive reaction to the September 11 attacks and diverse bodied scandals which undermined the economy, the Greenspan-led Federal Reserve initiated a series of interest cuts that brought down the federal funds rate to 1 % in 2004. While presenting the Federal Reserve ‘s monetary Policy Report in July 2002, he said that “ It is not that humans have become any more avaricious than in generations past. It is that the avenues to express greed had grown so enormously ”, and suggested that fiscal markets need to be more determine. [ 39 ] His critics, led by Steve Forbes, attributed the rapid rise in commodity prices and gold to Greenspan ‘s free monetary policy, which Forbes believed had caused excessive asset inflation and a fallible dollar. By late 2004, the price of amber was higher than its 12-year move average. Greenspan advised senior members of the George W. Bush administration to depose Saddam Hussein for the sake of the oil markets. [ 40 ] He believed that even a moderate disturbance to the flow of oil could translate into high oil prices, [ 41 ] which could lead to “ chaos ” in the global economy and bring the industrial world “ to its knees ”. [ 42 ] [ 43 ] He feared that Saddam could seize master of the Straits of Hormuz and restrict the transport of vegetable oil through them. In a 2007 interview, he said, “ people do not realize in this country, for model, how tenuous our ties to international energy are. That is, we on a casual basis require continuous flow. If that flow is shut off, it causes catastrophic effects in the industrial world. And it ‘s that which made him [ Saddam ] far more important to get out than bin Laden. ” [ 44 ] On May 18, 2004, Greenspan was nominated by President George W. Bush to serve for an unprecedented fifth term as president of the Federal Reserve. He was previously appointed to the station by Presidents Reagan, George H. W. Bush, and Bill Clinton. In a May 2005 lecture, Greenspan stated : “ Two years ago at this conference I argued that the growing array of derivatives and the related application of more-sophisticated methods for measuring and managing risks had been samara factors underlying the noteworthy resilience of the bank system, which had recently shrugged off austere shocks to the economy and the fiscal system. At the same time, I indicated some concerns about the risks associated with derivatives, including the risks posed by concentration in certain derivatives markets, notably the nonprescription ( OTC ) markets for U.S. dollar interest rate options. ” [ 45 ] Greenspan opposed tariffs against the People ‘s Republic of China for its refusal to let the yuan surface, [ 46 ] suggesting rather that any american english workers displaced by chinese deal could be compensated through unemployment policy and retraining programs. [ 47 ] Greenspan ‘s term as a member of the board ended on January 31, 2006, and Ben Bernanke was confirmed as his successor. As chair of the board, Greenspan did not give any circulate interviews from 1987 through 2005. [ 48 ]

After the Federal Reserve [edit ]

immediately after leaving the Fed, Greenspan formed an economic consult firm, Greenspan Associates LLC. [ 49 ] He besides accepted an honorary ( unpaid ) position at HM Treasury in the United Kingdom. On February 26, 2007, Greenspan forecast a potential recession in the United States before or in early 2008. [ 50 ] Stabilizing corporate profits are said to have influenced his comments. The follow day, the Dow Jones Industrial Average decreased by 416 points, losing 3.3 % of its measure. [ 51 ] In May 2007, Greenspan was hired as a particular adviser by Pacific Investment Management Company ( PIMCO ) to participate in their quarterly economic forums and speak privately with the bail managers about Fed interest rate policy. [ 52 ] In August 2007, Deutsche Bank announced that it would be retaining Greenspan as a senior adviser to its investing deposit team and clients. [ 53 ] In mid-january 2008, hedge fund Paulson & Co. hired Greenspan as an adviser. According to the terms of their agreement, he was not to advise any other hedge fund while working for Paulson. In 2007, Paulson had foreseen the collapse of the sub-prime housing market and hired Goldman Sachs to package their sub-prime holdings into derivatives and sell them. Some economic commentators blamed this collapse on Greenspan ‘s policies while at the Fed. [ 54 ] [ 55 ] On April 30, 2009, Greenspan offered a defense of the H-1B visa plan, telling a U.S. Senate subcommittee that the visa quota is “ far excessively minor to meet the want ” and saying that it protects U.S. workers from global contest, creating a “ inside elect ”. Testifying on immigration reform before the subcommittee on Immigration, Border Security and Citizenship, he said more skilled immigration was needed “ as the economy copes with the forthcoming retirement wave of skilled baby boomers ”. [ 56 ]

memoir [edit ]

Greenspan wrote a memoir titled The Age of Turbulence: Adventures in a New World, published September 17, 2007. Greenspan says that he wrote the book in longhand by and large while soaking in the bathtub, a habit he regularly employs since injured his back in 1971. Greenspan discusses in his book, among other things, his history in politics and economics, capitalism and other economic systems, stream issues in the global economy, and future issues that face the ball-shaped economy. In the script, Greenspan criticizes President George W. Bush, Vice President Dick Cheney, and the Republican-controlled Congress for abandoning the Republican Party ‘s principles on spend and deficits. Greenspan ‘s criticisms of President Bush include his refusal to veto spend bills, sending the area into increasingly deep deficits, and for “ putting political imperatives ahead of sound economic policies ”. [ 59 ] Greenspan writes, “ They swapped principle for power. They ended up with neither. They deserved to lose [ the 2006 election ] ”. [ 60 ] [ 61 ] He praised Bill Clinton above all the other presidents for whom he ‘d worked for his “ coherent, disciplined focus on long-run economic increase ”. [ 62 ] Although he respected what he saw as Richard Nixon ‘s huge intelligence, Greenspan found him to be “ deplorably paranoid, cynical and cynical ”. He said of Gerald Ford that he “ was ampere close to normal as you get in a president of the united states, but he was never elected ”. [ 61 ] Regarding future U.S. economic policy, Greenspan recommends improving the U.S. primary and secondary education systems. He asserts this would narrow the inequality between the minority of high-income earners and most workers whose wages have not grown in proportion with globalization and the nation ‘s GDP increase .

Objectivism [edit ]

In the early 1950s, Greenspan began an association with novelist and philosopher Ayn Rand. [ 64 ] Greenspan was introduced to Rand by his first wife, Joan Mitchell. Rand nicknamed Greenspan “ the mortician ” because of his preference for dark clothe and reserved demeanor. Although Greenspan was initially a coherent positivist, he was converted to Rand ‘s philosophy of Objectivism by her associate Nathaniel Branden. He became one of the members of Rand ‘s inner traffic circle, the Ayn Rand Collective, who read Atlas Shrugged while it was being written. During the 1950s and 1960s Greenspan was a advocate of Objectivism, writing articles for Objectivist newsletters and contributing respective essays for Rand ‘s 1966 book Capitalism: The Unknown Ideal including an test supporting the aureate standard. [ 66 ] [ 67 ] During the 1960s Greenspan offered a ten-lecture course, “ The Economics of a exempt society ”, under the auspices of the Nathaniel Branden Institute. The naturally highlighted the causes of prosperity and depression, the consequences of government intervention, and the fallacies of collectivist economics. [ 68 ] Rand stood beside him at his 1974 swearing-in as chair of the Council of Economic Advisers. [ 69 ] Greenspan and Rand remained friends until her death in 1982. [ 64 ] Greenspan has come under criticism from Harry Binswanger, [ 70 ] who believes his actions while at ferment for the Federal Reserve and his publicly expressed opinions on early issues show abandonment of Objectivist and unblock marketplace principles. When questioned in relation back to this, however, he has said that in a democratic club individuals have to make compromises with each other over conflicting ideas of how money should be handled. He said he himself had to make such compromises, because he believes that “ we did highly well ” without a central bank and with a aureate standard. [ 71 ] In a congressional learn on October 23, 2008, Greenspan admitted that his free-market ideology shunning certain regulations was flawed. [ 72 ] When asked about release markets and Rand ‘s ideas, however, Greenspan clarified his position on laissez faire capitalism and asserted that in a democratic company there could be no better alternative. He stated that the errors that were made stemmed not from the principle, but from the application of competitive markets in “ assuming what the nature of risks would be ”. [ 73 ] E. Ray Canterbery has chronicled Greenspan ‘s relationship with Rand, and has concluded that the charm has had baneful effects on Greenspan ‘s monetary policy. [ 74 ]

reception [edit ]

Housing ripple [edit ]

In the wake of the subprime mortgage and credit rating crisis in 2007, Greenspan stated that there was a bubble in the U.S. housing market, warning in 2007 of “ big double digit declines ” in home values “ larger than most people expect ”. [ 75 ] Greenspan besides noted, however, “ I truly did n’t get it until very late in 2005 and 2006. ” [ 76 ] Greenspan stated that the house bubble was “ basically engendered by the decline in real long-run concern rates ”, [ 77 ] though he besides claims that long-run interest rates are beyond the restraint of central banks because “ the market value of ball-shaped long-run securities is approaching $ 100 trillion ” and frankincense these and early asset markets are large enough that they “ nowadays swamp the resources of central banks ”. [ 78 ] After the September 11, 2001 attacks, the Federal Open Market Committee voted to reduce the federal funds rate from 3.5 % to 3.0 %. [ 79 ] then, after the accounting scandals of 2002, the Fed dropped the federal funds rate from then stream 1.25 % to 1.00 %. [ 80 ] Greenspan stated that this dismiss in rates would have the effect of leading to a scend in family sales and refinance, adding that “ Besides sustaining the demand for new construction, mortgage markets have besides been a powerful stabilize impel over the past two years of economic distress by facilitating the extraction of some of the equity that homeowners have built up over the years ”. [ 80 ] According to some, however, Greenspan ‘s policies of adjusting sake rates to historic lows contributed to a caparison burp in the United States. [ 81 ] The Federal Reserve acknowledged the association between lower interest rates, higher home values, and the increased fluidity the higher home values bring to the overall economy : “ Like early asset prices, family prices are influenced by interest rates, and in some countries, the housing market is a key duct of monetary policy transmittance ”. [ 82 ] In a February 23, 2004, speech, [ 83 ] Greenspan suggested that more homeowners should consider taking out adjustable-rate mortgages ( ARMs ) where the interest rate adjusts itself to the current concern in the market. [ 84 ] The Fed ‘s own funds rate was at a then all-time-low of 1 %. A few months after his recommendation, Greenspan began raising interest rates, in a series of pace hikes that would bring the funds pace to 5.25 % about two years late. [ 85 ] A triggering divisor in the 2007 subprime mortgage fiscal crisis is believed to be the many subprime ARMs that reset at much higher interest rates than what the borrower paid during the beginning few years of the mortgage. In 2008, Greenspan expressed bang-up frustration that the February 23 lecture was used to criticize him on ARMs and the subprime mortgage crisis, and stated that he had made countervailing comments eight days after it that praised traditional fixed-rate mortgages. [ 86 ] In that language, Greenspan had suggested that lenders should offer to family purchasers a greater variety of “ mortgage product alternatives ” other than traditional fixed-rate mortgages. [ 83 ] Greenspan besides praised the raise of the subprime mortgage industry and its tools for assessing credit-worthiness :

invention has brought about a battalion of raw products, such as subprime loans and recess credit programs for immigrants. such developments are congressman of the market responses that have driven the fiscal services industry throughout the history of our state … With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. … Where once more-marginal applicants would simply have been denied credit, lenders are now able to quite efficiently judge the risk posed by individual applicants and to price that risk appropriately. These improvements have led to rapid increase in subprime mortgage lend ; indeed, today subprime mortgages account for roughly 10 percentage of the issue of all mortgages outstanding, up from just 1 or 2 percentage in the early 1990s. [ 87 ]

The subprime mortgage industry collapsed in March 2007, with many of the largest lenders filing for bankruptcy security in the face of spiraling foreclosure rates. For these reasons, Greenspan has been criticized for his function in the upgrade of the caparison bubble and the subsequent problems in the mortgage diligence, [ 88 ] [ 89 ] equally well as “ engineering ” the house bubble itself. In 2004 Businessweek cartridge holder analysts argued : “ It was the Federal Reserve-engineered decline in rates that inflated the house bubble … the most troublesome aspect of the price runup is that many holocene buyers are squeezing into houses that they can barely afford by taking advantage of the lower rates available from adjustable-rate mortgages. That leaves them amply exposed to rising rates. [ 90 ] In September 2008 Joseph Stiglitz stated that Greenspan “ did n’t truly believe in regulation ; when the excesses of the fiscal system were noted, ( he and others ) called for self-regulation—an oxymoron “. [ 91 ] Greenspan, according to The New York Times, says he himself is blameless. [ 92 ] On April 6, 2005, Greenspan called for a solid increase in the regulation of Fannie Mae and Freddie Mac : “ Appearing before the Senate Banking Committee, the Fed president, Alan Greenspan, said the enormous portfolios of the companies—nearly a draw of the home-mortgage market—posed significant risks to the nation ‘s fiscal system should either caller expression significant problems. ” [ 93 ] Despite this, Greenspan still claims to be a tauten believer in unblock markets, although in his 2007 biography he wrote, “ History has not dealt kindly with the aftermath of prolong periods of humble gamble premiums “ as seen before the accredit crisis of 2008. In 2009 Robert Reich wrote that “ Greenspan ‘s worst motion was to contribute to the giant house house of cards and the worst worldwide crash since the Great Depression. In 2004 he lowered sake rates to 1 %, enabling banks to borrow money for free, adjusted for ostentation. naturally, the banks wanted to borrow vitamin a much as they possibly could, then lend it out, earning decent profits. The position screamed for politics oversight of lend institutions, lest the banks lend to disqualify borrowers. He refused, trusting the market to weed out bad credit risks. It did not. ” [ 94 ] In congressional testimony on October 23, 2008, Greenspan last conceded erroneousness on regulation. The New York Times wrote, “ a broken Mr. Greenspan admitted that he had put besides much religion in the self-correcting ability of free markets and had failed to anticipate the self-destructive power of wanton mortgage lend … Mr. Greenspan refused to accept blame for the crisis but acknowledged that his belief in deregulation had been shaken ”. Although many republican lawmakers tried to blame the house bubble on Fannie Mae and Freddie Mac, Greenspan placed far more blame on Wall Street for bundling subprime mortgages into securities. [ 95 ]

late 2000s recession [edit ]

In March 2008, Greenspan wrote an article for the Financial Times ‘ Economists ‘ Forum in which he said that the 2008-financial crisis in the United States is probable to be judged as the most racking since the end of World War II. In it he argued : “ We will never be able to anticipate all discontinuities in fiscal markets. ” He concluded : “ It is significant, indeed crucial, that any reforms in, and adjustments to, the structure of markets and rule not inhibit our most reliable and effective safeguards against accumulative economic failure : marketplace flexibility and open contest. ” The article attracted a issue of critical responses from forum contributors, who, finding causing between Greenspan ‘s policies and the discontinuities in fiscal markets that followed, criticized Greenspan chiefly for what many believed to be his unbalance and real property ideological suppositions about global capitalism and detached competitive markets. celebrated critics included J. Bradford DeLong, Paul Krugman, Alice Rivlin, Michael Hudson, and Willem Buiter. [ 96 ] Greenspan responded to his critics in a follow-up article in which he defended his political orientation as applied to his conceptual and policy model, which, among other things, prohibited him from exerting veridical pressure against the burgeoning house burp or, in his words, “ leaning against the wind instrument ”. Greenspan argued, “ My opinion of the stove of dispersion of outcomes has been shaken, but not my opinion that free competitive markets are by far the matchless way to organize economies ”. He concluded : “ We have tried regulation ranging from heavy to cardinal planning. none meaningfully worked. Do we wish to retest the testify ? ” [ 97 ] Financial Times consociate editor program and head economics commentator Martin Wolf defended Greenspan primarily as a scapegoat for the market convulsion. respective noteworthy contributors in refutation of Greenspan included Stephen S. Roach, Allan Meltzer, and Robert Brusca. [ 98 ] however, an October 15, 2008, article in The Washington Post analyzing the origins of the economic crisis claims that Greenspan vehemently opposed any regulation of derivatives, and actively sought to undermine the office of the Commodity Futures Trading Commission when the mission sought to initiate regulation of derivatives. interim, Greenspan recommended improving mark-to-market regulations to avoid having derivatives or other complex assets marked to a disquieted or illiquid market during times of fabric adverse conditions seen during the late 2000s credit crisis. [ 99 ] Greenspan was not alone in his opposition to derivatives regulation. In a 1999 government report that was a key driver in the passing of the Commodity Futures Modernization Act of 2000 —legislation that clarified that most over-the-counter derivatives were outside the regulative authority of any government agency—Greenspan was joined by Treasury Secretary Lawrence Summers, Securities and Exchange Commission Chairman Arthur Levitt, and Commodity Futures Trading Commission Chairman William Ranier in concluding that “ under many circumstances, the deal of fiscal derivatives by eligible barter participants should be excluded from the CEA ” ( Commodity Exchange Act ). other government agencies besides supported that view. [ 100 ] In congressional testimony on October 23, 2008, Greenspan acknowledged that he was “ partially ” faulty in opposing regulation and stated “ Those of us who have looked to the egoism of lend institutions to protect stockholder ‘s equity—myself especially—are in a state of shock incredulity. ” [ 101 ] [ 102 ] Referring to his free-market ideology, Greenspan said : “ I have found a flaw. I do n’t know how meaning or permanent wave it is. But I have been very distress by that fact. ” When Representative Henry Waxman ( D-CA ) pressed him to clarify his words. “ In early words, you found that your see of the populace, your political orientation, was not right, it was not working, ” Waxman said. “ absolutely, precisely ”, Greenspan replied. “ You know, that ‘s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well. ” [ 103 ] Greenspan admitted demerit [ 104 ] in opposing regulation of derivatives and acknowledged that fiscal institutions did n’t protect shareholders and investments adenine good as he expected. Matt Taibbi described the Greenspan put and its bad consequences saying : “ every time the banks blew up a notional burp, they could go back to the Fed and borrow money at zero or one or two percentage, and then start the game all over ”, thereby making it “ about impossible ” for the banks to lose money. [ 105 ] He besides called Greenspan a “ classical con man “ who, through political grok, “ flattered and bullshitted his way up the Matterhorn of American might and … jacked himself off to the attention of Wall Street for 20 back-to-back years ”. [ 106 ] In the objective movie Inside Job, Greenspan is cited as one of the persons responsible for the fiscal crisis of 2007–2008. He is besides named in Time magazine as one of the “ 25 People to Blame for the Financial Crisis ”. [ 107 ]

political views and alleged politicization of position [edit ]

Greenspan describes himself as a “ lifelong libertarian Republican “. [ 61 ] In March 2005, in reaction to Greenspan ‘s support of President Bush ‘s design to partially privatize Social Security, then-Democratic Senate Minority Leader Harry Reid attacked Greenspan as “ one of the biggest political hacks we have in Washington ” [ 5 ] [ 6 ] and criticized him for supporting Bush ‘s 2001 tax cut design. [ 7 ] Then-Democratic House Minority Leader Nancy Pelosi added that there were unplayful questions about the Fed ‘s independence as a solution of Greenspan ‘s public statements. [ 108 ] Greenspan besides received criticism from democratic Congressman Barney Frank and others for supporting Bush ‘s Social Security plans favoring secret accounts. [ 109 ] [ 110 ] [ 111 ] Greenspan had said Bush ‘s mannequin has “ the seeds of developing wax fund by its very nature. As I ‘ve said before, I ‘ve always supported moves to full fund in the context of a individual account ”. [ 112 ] Others, like Republican Senator Mitch McConnell, disagreed that Greenspan was excessively deferent to Bush, stating that Greenspan “ has been an mugwump player at the Fed for a long time under both parties and made an enormous positive contribution ”. [ 113 ] economist Paul Krugman wrote that Greenspan was a “ three-card maestro ” with a “ miss of sincerity ” who, “ by repeatedly shilling for whatever the Bush presidency wants, has betrayed the believe placed in the Fed president ”. [ 114 ] republican Senator Jim Bunning, who opposed Greenspan ‘s one-fifth reconfirmation, charged that Greenspan should comment only on monetary policy, not fiscal policy. [ 115 ] [ 116 ] Greenspan had used his put as Fed president to comment upon fiscal policy deoxyadenosine monophosphate early as 1993, however, when he supported President Clinton ‘s deficit decrease plan, which included tax increases and budget cuts. In an October 2011 call on the carpet addressing the Occupy apparent motion, [ 118 ] Noam Chomsky characterized portions of Greenspan ‘s February 1997 testimony to the U.S. Senate as an example of the self-serving attitudes of the alleged 1 %. In that testimony, Greenspan had stated that growing worker insecurity is a significant gene keeping inflation and inflation expectation moo, thereby promoting long-run investment. [ 119 ]

personal life [edit ]

Greenspan and wife Andrea Mitchell in 2000 Greenspan has married doubly. His first marriage was to canadian artist Joan Mitchell in October 1952 ; the marriage ended in abrogation 10 months late. He dated newswoman Barbara Walters in the late 1970s. In December 1984, Greenspan began dating journalist Andrea Mitchell. Greenspan at the time was 58 and Mitchell was 38. In April 1997, they were married by Supreme Court Justice Ruth Bader Ginsburg .

Honors [edit ]

In 1976, Greenspan received the U.S. Senator John Heinz Award for Greatest Public Service by an Elected or Appointed Official, an award given out annually by Jefferson Awards. [ 130 ] In 1989, Greenspan was elected as a boyfriend of the American Statistical Association. [ 131 ] Greenspan was elected to the american Philosophical Society in 2000. [ 132 ] In 2004, Greenspan received the Dwight D. Eisenhower Medal for Leadership and Service, from Eisenhower Fellowships. In 2005, he became the foremost recipient role of the Harry S. Truman Medal for Economic Policy, presented by the Harry S. Truman Library Institute. In 2007, Greenspan was the recipient role of the inaugural Thomas Jefferson Foundation Medal in Citizen Leadership, presented by the University of Virginia. On April 19, 2012, Greenspan received the Eugene J. Keogh Award for Distinguished Public Service from NYU. [ 133 ]

scholastic [edit ]

Honorary Degrees

Books [edit ]

See besides [edit ]

References [edit ]

Works cited [edit ]

foster read [edit ]

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