Greenspan: I Played No Role in Housing Bubble, Calls Sen. Paul's 'Audit the Fed' Bill 'Terrible'

The former Fed chairman instead blames "spirits"

Alan Greenspan defends legacy from harsh criticism (CNN)

Former Federal Reserve Chairman Alan Greenspan is out with a new book, "The Map and the Territory: Risk, Human Nature, and the Future of Forecasting." The book has already garnered some harsh reviews, particularly from liberal progressive writer David Dayen, who wrote in The New Republic Tuesday, "Anyone who’s paid attention to the economy the past few years knows how ridiculous it is to fete Greenspan, the main architect of the policies that led to the Great Recession."

Dayen suggests Greenspan shares the blame with JPMorgan Chase for duping investors into purchasing mortgage-backed securities that were stuffed with garbage loans because his “allergy to regulation and unshakeable belief in the virtues of the free market led him to ignore the bubble and its risks, infusing investors and consumers with confidence that the run-up in home prices was perfectly normal.”

"This is not an American bubble. The housing bubble looks the same whether you're going to Canada, Australia or any of 20 other countries. We're somewhere in the middle," said Greenspan.

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