Five years ago it was only cranks like Jeremy Grantham and Stephen Roach who were appalled by the serial bubble-blowing habits of Fed Chairman Alan Greenspan. In those days, Greenspan was still the Maestro, and the country was worrying about how it could possibly get along without him.
How times change.
Now, if there’s one universal scapegoat for the housing bust, it’s Alan Greenspan–the man who made money free for years, pooh-poohed the idea of a housing bubble, and rubber-stamped adjustable rate mortgages. And lately, as derivative bombs have been exploding in the holds of one titanic financial institution after another, people are remembering that Greenspan fought tooth and nail against any form of derivative regulation.
How far has Greenspan-bashing progressed? Now even the New York Times has jumped aboard. Specifically, it is “Taking A Hard New Look At The Greenspan Legacy“. Greenspan himself declined to be interviewed.