Alan Greenspan, former chairman of the Fed, dies at age 100

• Greenspan's famous 'irrational exuberance' comment in December 1996 initially shocked global markets, with Tokyo dropping 3%, though the dot-com bubble didn't burst until 2001
• His tenure began just 69 days before the 1987 Black Monday crash, when the Dow fell 22.6% in one session, the biggest one-day sell-off in history
• Critics blamed his 'Greenspan put' easy money policies for setting the stage for the housing bubble, though he defended low rates as worth the risk to promote broader homeownership

Summary: Alan Greenspan, Former Fed Chairman, Dies at 100

Alan Greenspan, who served as Federal Reserve Chairman for 19 years across four presidential administrations (Reagan through George W. Bush), died Monday from complications of Parkinson's Disease. His tenure from 1987 to 2006 was the second-longest in Fed history, four months short of William McChesney Martin's record.

Key Career Highlights:

Greenspan navigated multiple crises including the 1987 Black Monday crash (22.6% single-day decline), two recessions, the 1997 Asian financial crisis, the dot-com bubble, and the 9/11 attacks. His first major test came just 69 days into his tenure when the Dow dropped 508 points on October 19, 1987. He responded by lowering interest rates and providing market liquidity, earning the nickname "Maestro."

Market Impact:

His December 5, 1996 "irrational exuberance" comment about overvalued assets caused Tokyo's market to drop 3%, though markets recovered and continued climbing until the 2001 dot-com bust. Observers noted he could "send the stock market to heaven or hell" with his words.

Legacy and Criticism:

Greenspan focused on fighting inflation over full employment and presided over the longest economic expansion in U.S. history. However, critics blamed his low interest-rate policies—the "Greenspan put"—for creating conditions leading to the 2008 housing bubble and Great Recession. He acknowledged in 2007 failing to recognize the significance of risky subprime lending practices until late 2005-2006.

Post-Fed Career:

After retirement, Greenspan founded Greenspan Associates consulting firm and remained an influential voice on economic policy. In January 2026, he joined other former officials defending Fed independence against reported criminal inquiries into Chair Jay Powell.