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"Alan Greenspan has made a career out of making convoluted statements about the real consequence of his monetary policies at the Fed. In vintage Greenspan doublespeak, the former Fed Chairman blatantly lies about not only his support of the Bush Tax cuts but also his direct contribution to the real estate and credit bubble that is now exploding all around us. His most egregious lie is to suggest that he tried to prevent the bubble by raising rates but was hampered by capital inflows as a "result of the end of the cold war." What he fails to mention is that it was his dropping of the Fed Funds rate to 1% that facilitated this credit expansion, and the fact that he tried to raise it later in 2005 in the face of an inverting yield curve is meaningless, not to mention that his theory about foreigns savings being at fault for the rise in liquidity directly contradicts the fact that the Fed's massive liquidity surge enabled capital inflows to be used for credit expansion. Without a loose monetary policy (i.e. low rates) it wouldn't make a difference what foreigners wanted to do with