Welcome to the club

I've been saying for years that Alan Greenspan was a horrible Fed chief, a serial-bubble-creator whose coup de grace was the greatest financial bubble in the history of the world, the housing bubble. And he's left his successors to clean up the mess.

Now some in the mainstream media are starting to agree. Reuters:

During his 18 years at the central bank, Greenspan unleashed the greatest credit boom in recent memory, bringing interest rates to their lowest levels in a generation.

The result was an unprecedented lending bonanza that saw risk spreads narrow to all-time lows and sent investors far and wide in search for the highest possible returns.

"Years and years of easy monetary policy under Greenspan created a tremendous amount of excess liquidity, which caused a total mispricing of risk," said Frank Hsu, director of global fixed-income at Fimat. "Now we're getting payback."