As the mortgage-market meltdown continues to push the Iraq War from the headlines and put sweat on the brows of Washington’s policymakers, it’s heartening to learn that some folks have done well by the economic chaos. Still, did it have to be the guy who, from Washington, helped produce the lending crisis to begin with? (Yes, it did.)
Alan Greenspan, who left his post as chairman of the Federal Reserve in January 2006, just took a consulting job with Paulson & Co., a New York-based hedge-fund manager which last year made profits estimated between $12 billion and $15 billion betting that the bottom would drop out of the housing market — a trend to which many observers say Greenspan contributed by holding interest rates artificially low during his tenure.
“Greenspan will spend the rest of his life ducking and dodging responsibility for this crisis,” said Lawrence Hunter, a Jack Kemp conservative and economist at the Texas-based Institute for Policy Innovation.
Meanwhile, the 18-year Fed chairman’s gotta pay the rent somehow. Maestro, indeed.