Greenspan's `Superstar' Standing Suffers as Risk of U.S. Recession Grows

Jan. 10 (Bloomberg) -- The next bubble to deflate may be Alan Greenspan's reputation.

Hailed as perhaps the greatest central banker who ever lived when he left the Federal Reserve in 2006, Greenspan is under attack from critics ranging from the New York Times to economists at the American Enterprise Institute for his handling of the 2000-2005 housing boom. The former Fed chairman has taken to the media to defend himself, writing in the Wall Street Journal and appearing on network television.

``He's had a bubble reputation that derived from the growth of U.S. household wealth,'' said Edward Chancellor, author of ``Devil Take the Hindmost: A History of Financial Speculation.'' ``As that goes down, his standing as a superstar will suffer.''

At stake is not only Greenspan's legacy but also the future of policies he espoused during 18-1/2 years atop the central bank. Critics blame his aversion to regulation and reluctance to use interest rates to puncture asset bubbles for the boom in mortgage lending and house prices that has since gone bust, threatening to throw the economy into recession.

In an interview, Greenspan said such criticism ignores limits on what regulation and monetary policy can achieve.

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http://www.bloomberg.com/apps/news?pid=20601109&sid=aAmI1nLEjiEU&refer=exclusive

when he started saying 'yes master' to Bush and changing his guidance cause the White House didn't like the truth.

This is another nail in his reputation's coffin. RIP.

it was literally Monday he warns about debt...Tuesday he says deficit doesn't matter

It was so transparent, it was nauseating

that way. This is one for the history books, all right ... I'm remembering my economics classes and how much fun we had during the Volker years. Greenspan's name meant something then ... it takes a while to relearn.

redefined so many economic measures to make things look hunky-dory.
and that so many statistics that used to be readily available are no longer tracked or not available