The Maestro’s mess?

Growing problems in the housing market tarnish Alan Greenspan’s reputation | Timothy Lamer

On Sept. 18, the Ben Bernanke-led Federal Reserve Board cut the federal funds rate by a half point, an aggressive move that reflected the approach of his predecessor, Alan Greenspan. For some, this was a relief. But for a growing number of critics, it was an ominous sign—a ham-handed attempt to deal with a housing mess that they say Greenspan left for him.

This is a big change from just a year ago. When Greenspan retired from the Fed early last year, he was hailed as the "Maestro" of the nation's money supply, an economic sage who had kept inflation tame and the economy growing during his 18 years in office (see "End of an era," Feb. 4, 2006). But fallout from the housing crunch is tarnishing that reputation.