This guy is an idiotic. First of all, Greenspan's politics are ridiculously to the right. He makes Reagan look like a communist. This guy was bosom-buddies with Ayn Rand. Ever here any of his speeches that go beyond strict monetary policy -- he's for tax cuts, tiny government, and privatized social security. There is no reason to suspect he was trying to help Clinton except moronic, uninformed paranoia.
Second of all, the proper role of a central banker is to control inflation. You don't want central bankers mucking around with interest rates and the money supply to prick "bubbles" real and imagined. To do so would be disasterous.
don't want central bankers mucking around with interest rates and the money supply to prick "bubbles" real and imagined. In theory, you are correct. In theory, also, politicians shouldn't be passing laws concerning supply and demand, ramming these things into the market. When these types of "pork" are passed, diddling with "interest rates" is one way of mitigating either inflation or runaway spending.