Former Fed Chairman Alan Greenspan Dies at 100

• His famous 'irrational exuberance' comment in December 1996 initially caused global markets to tumble, though they recovered and continued climbing until the dot-com bust in 2001.
• Greenspan later acknowledged he failed to recognize the significance of risky subprime lending practices until late 2005-2006, which contributed to the housing bubble and subsequent Great Recession.
• In January 2026, he joined other former Fed and Treasury officials in signing a statement criticizing reported criminal inquiries into current Fed Chair Jay Powell as an 'unprecedented attempt' to undermine central bank independence.

Summary: Former Federal Reserve Chairman Alan Greenspan Dies at 100

Key Facts:

Alan Greenspan, former Federal Reserve Chairman, died Monday at age 100 from complications of Parkinson's Disease. He served 19 years (1987-2006) under four presidents—Reagan, George H.W. Bush, Clinton, and George W. Bush—making his tenure the second-longest in Fed history, just four months shorter than William McChesney Martin's 1951-1970 term.

Career Highlights:

Greenspan's chairmanship began just 69 days before Black Monday (October 19, 1987), when the Dow Jones plunged 22.6%—the largest one-day decline in history. His swift action to lower interest rates and provide liquidity helped markets recover within days, earning him the "Maestro" moniker.

His most famous moment came December 5, 1996, when he coined "irrational exuberance" regarding overvalued markets. Tokyo's market immediately fell 3%, though the dot-com bubble didn't burst until 2001.

Market Impact & Legacy:

Greenspan navigated two recessions, the 1997 Asian financial crisis, 1998 Russian default, Long-Term Capital Management bailout, and 9/11 attacks. He focused primarily on fighting inflation over employment promotion.

Controversies:

Critics blamed his low interest-rate policies—the "Greenspan put"—for creating conditions leading to the 2008 Great Recession. He later acknowledged underestimating subprime mortgage risks until late 2005-2006.

Post-Fed Career:

After retirement, Greenspan founded Greenspan Associates consulting firm. He remained vocal on Fed independence, criticizing President Trump's Fed-bashing in 2019 and defending Chairman Powell in January 2026.

Personal:

Born March 6, 1926, in New York, Greenspan married NBC journalist Andrea Mitchell in 1997. His legacy remains debated among economists and market participants.