Former Federal Reserve Chairman Alan Greenspan dies at 100

The Associated Press

WASHINGTON — Alan Greenspan, the jazz-playing U.S. Federal Reserve chair who was celebrated for engineering a decade of prosperity but later shared the blame for a devastating financial crisis, died Monday. He was 100.

Greenspan died from complications of Parkinson’s disease, said his wife of 29 years, NBC News correspondent Andrea Mitchell.

"To me he was my husband, who shaped my life from our very first date in 1984," Mitchell wrote. "He had ‘irrational exuberance’ for baseball, the Washington Commanders, tennis, golf, and music, especially jazz. He will be remembered for his brilliance and his kindness. Being his life partner was the joy of my life."

The Fed said Greenspan helped to cement trust in the Fed during a time of economic uncertainty.

"Under his leadership, the Federal Reserve achieved a sustained era of price stability that supported economic growth and helped anchor the public’s confidence in the institution," the central bank said in a statement Monday.

GREENSPAN WAS HAILED AS "MAESTRO’’ — BEFORE CRISIS HIT

In 18 1/2 years at the Fed, Green-span presided over a breathtaking surge in stock prices and a 10year economic boom that started in March 1991. He was celebrated as "Maestro’’ and "Oracle’’ — an economic virtuoso whose every utterance was dissected for clues on where interest rates and the economy were headed.

The intense scrutiny of Greenspan’s intentions gave birth to new Fed folklore: the "Briefcase Indicator." A stuffed briefcase carried into Fed meetings implied changes might be afoot because Greenspan carried with him charts and research to make his point.

But his reputation began to suffer almost as soon as he left the Fed in 2006. American housing prices tumbled rapidly, causing huge losses for banks that had repackaged mortgage loans into a dizzying array of complex securities. The growing financial crisis pushed the U.S. economy into the Great Recession of 20072009 — the deepest downturn since the 1930s.

Critics blamed the devastation on Greenspan’s easy money policies and his support for deregulated financial markets. Greenspan himself later acknowledged "I made a mistake’’ in assuming that banks could essentially regulate themselves.

GREENSPAN BECAME AUTHORITATIVE VOICE ON THE US ECONOMY

For almost two decades, it seemed that Greenspan could do no wrong. Not only in the United States but across the world, he was regarded with a mixture of reverence and awe. Many openly dreaded the day when he would leave the Fed.

Investors hung on his sometimes inscrutable observations. In the most well-known such remark, Greenspan sent financial markets reeling on Dec. 5, 1996, when he suggested with just two words — "irrational exuberance" — that stock prices were too high.

Mindful of his power to move markets, Greenspan typically resorted to obfuscation. At times, he even joked about his habit of doing so. "I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant," Green-span once told a befuddled congressional committee.

A PROTÉGÉ IS BORN

Born in the Washington Heights neighborhood of Manhattan, the young Greenspan was a math whiz who was trotted out by his mother to show off for visitors.

"I was a prop at parties,’’ he said in a 2007 interview with PBS NewsHour. A Julliard School dropout, he worked as a professional musician in his teens, playing clarinet and saxophone alongside the future jazz great Stan Getz. It was a humbling experience that persuaded the young Greenspan to seek another line of work.

He pursued undergraduate and graduate study in economics at New York University, eventually earning a doctorate there. For most of three decades, he ran an economic consulting firm. During the 1950s, he became a disciple of the libertarian philosopher Ayn Rand, who stuck him with the nickname the "Undertaker’’ for his dark clothes and quiet bearing. When Greenspan was sworn in as President Gerald Ford’s chief economic adviser in 1974, Rand stood beside him.

Alan Greenspan, chairman of the Federal Reserve Board of Governors, awaits the start of a Congressional hearing in Washington on April 20, 2004. Greenspan, who in nearly two decades as chair of the Federal Reserve nurtured a long run of prosperity, died on Monday. He was 100.DOUG MILLS — THE NEW YORK TIMES