Exit the Maestro; Will Greenspan's Legacy Become Bernanke's Burden?
No man's reputation is safe at his retirement, and so it is with Alan Greenspan's. History's verdict will await subsequent events that reveal the long-term consequences of his 18 years as chairman of the Federal Reserve. But until then it's silly to discount (as the Economist recently did) his apparent accomplishments. Doubters should consult standard economic statistics covering his tenure since 1987:</br></br>The U.S. economy (gross domestic product) has expanded 72 percent, and its growth rate has outstripped that of virtually every other advanced country.</br></br>The number of payroll jobs increased by 32.1 million (31 percent) from August 1987 (Greenspan's first month) to December 2005.</br></br>Interest rates dropped from 8.39 percent on 10-year Treasury bonds and 9.31 percent on 30-year mortgages (1987 averages) to 4.5 percent and 6.1 percent, respectively.</br></br>The Dow Jones industrial average quadrupled, from 2,680 on Greenspan's first day (Aug. 11) to 10,900 (as of Jan. 30).