Below is from Greenspan's talk to a symposium of the Federal Reserve Bank of Kansas City in Jackson Hole:
"The notion that a well-timed incremental tightening could have been calibrated to prevent the late 1990s bubble is almost surely an illusion," -- August 30th 2002
"As events evolved, we recognised that, despite our deep suspicions, it was very difficult to definitively identify a bubble until after the fact." -- August 30th 2002
Compare this with the following excerpts from the Federal Open Market Committee meetings:
"When we moved on Feb 4, I think our expectation was that we would prick the bubble in the equity markets." -- March 22 1994
"We let a lot of air out of the tire" -- April 18 1994
"I think there's still a lot of bubble around; we have not completely eliminated it." -- May 17 1994
"We do have the possibility of raising major concerns by increasing margin requirements. I guarantee that if you want to get rid of the bubble, whatever it is, that will do it." -- Sept. 24, 1996
And the kicker:
"The type of underlying conditions that create bubbles are very difficult to initiate in the housing market. It is not an issue on the table on the moment." -- July 17 2002
"The notion that a well-timed incremental tightening could have been calibrated to prevent the late 1990s bubble is almost surely an illusion," -- August 30th 2002
"As events evolved, we recognised that, despite our deep suspicions, it was very difficult to definitively identify a bubble until after the fact." -- August 30th 2002
Compare this with the following excerpts from the Federal Open Market Committee meetings:
"When we moved on Feb 4, I think our expectation was that we would prick the bubble in the equity markets." -- March 22 1994
"We let a lot of air out of the tire" -- April 18 1994
"I think there's still a lot of bubble around; we have not completely eliminated it." -- May 17 1994
"We do have the possibility of raising major concerns by increasing margin requirements. I guarantee that if you want to get rid of the bubble, whatever it is, that will do it." -- Sept. 24, 1996
And the kicker:
"The type of underlying conditions that create bubbles are very difficult to initiate in the housing market. It is not an issue on the table on the moment." -- July 17 2002