Greenspan Missed Subprime Crisis Signs

And Bernanke's doing 'an excellent job,' says Fed's former Yoda

By Sam Gale Rosen, Newser Staff

Posted Sep 13, 2007 3:19 PM CDT

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Greenspan Missed Subprime Crisis Signs — ** FILE* Federal Reserve Board Chairman Alan Greenspan testifies on Capitol Hill in this Nov. 3, 2005 file photo. Deutsche Bahn AG said Monday, Aug. 13, 2007, that it is bringing in former U.S. Federal Reserve Chairman Alan Greenspan as an advisor to its investment banking unit. (AP Photo/Lauren Victoria... (Associated Press)

Alan Greenspan didn't see the subprime crunch coming, the former Fed chairman tells CBS' "60 Minutes." Greenspan also gave his successor a pat on the back, saying Ben Bernanke "is doing an excellent job." Some have suggested that Bernanke isn't acting as presciently as his predecessor; not so, says Greenspan—"I'm not certain I would have done anything different."

Analysts tell Bloomberg that kudos from Greenspan can be a boon to Bernanke. Given Greenspan's "significant legacy and stature, giving Bernanke an 'atta-boy' in this environment is a positive boost for Bernanke," says a securities firm bigwig. The interview is scheduled to air Sunday, a day before the release of Greenspan's book "The Age of Turbulence." (More Alan Greenspan stories.)

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