Greenspan left the Fed at the beginning of 2006. He is the favorite scapegoat of the Democrats because he advocated deregulation. The current financial mess is not a result of deregulation, but of government meddling in the economy. The Democrats want an excuse to meddle even more, hence their toadies are attacking anyone that they can brand as market oriented. Greenspan was not omniscient, and there is a limit to how much the Fed chairman can do to compensate for the fraud and thievery committed by the Democrat gang.
Sorry but you are just following a party line opinion from somewhere.
“The current financial mess is not a result of deregulation, but of government meddling in the economy.”
No, that’s the red herring.
It’s the over the counter derivatives and the housing bubble. The derivative trading allowed the creation of tradeable financial instruments that held mortgages in split risk forms of speculative market trading. Everyone was getting rich off the rising values of speculative real estate ownership. While it was going up it was OK. As soon as there were more properties for sale than buyers to buy them then the balloon burst. It always happens that way. All you have to do is to honestly look at the history of the housing market. BTW, I got the Greenspan memo that the housing bubble was about to burst. I knew there was going to be a collapse back in 2005. I’m a builder. I know things.
The current mess is the result of scrapping Glass-Steagall in the late 90s and allowing a huge highly leveraged shadow banking system to develop.
There was a struggle between Born and Greenspan over the expanding CDS market.
She correctly foresaw the devastating dominoe effect they could have.
But Greenspan, Geitner, and Sumners got their way.
Now O still has Geitner and Sumners working their wonderful bailout ways.