Greenspan on bubbles, again

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News item: ‘Former Federal Reserve Chairman Alan Greenspan said the current market turmoil is ‘identical’ in many ways to that which occurred in 1987 and 1998, the Wall Street Journal reported in its online edition on Friday.

‘Greenspan, now a private consultant, said euphoria takes over when the economy is expanding and leads to bubbles, ‘and these bubbles cannot be defused until the fever breaks,’ the Journal said.... Bubbles can’t be defused through incremental adjustments in interest rates, he suggested, the paper reported.’

Watch out: Greenspan will soon embark on one of those tired, tightly scheduled book tours that the media cannot resist. He’ll do ’60 Mintues’ on Sept. 16, then the ‘Today’ show the following morning, and no doubt major newspapers at roughly the same time.

Your comments? Thoughts on Greenspan’s role in the current mortgage mess?
Photo Credit: Reuters