Greenspan’s Legacy

Alan Greenspan is worried about his legacy. When he retired two years ago, he was lionized as the greatest central banker in history. Now, with the economy slipping and the markets in turmoil, St. Alan is in danger of seeing his halo tarnish.

In Greenspan’s defense, many critics look back with hindsight and “forecast” what he should have done four years ago. Where were they when he was making his tough calls? In fact, the low interest rates that helped feed the housing boom were a conundrum, and these persisted long after the Fed began to raise rates.

But one aspect of Greenspan’s leadership that’s rarely examined is the make-up of the Board. One by one strong Governors like Wayne Angell or Larry Lindsay just didn’t stick around. I don’t think Greenspan forced anyone to think his way, but the lack of dissent under him was remarkable. And the resulting group-think that came from consensus-building had its drawbacks. One of which is a legacy of two burst financial bubbles.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T18:02:39+00:00 April 9th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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