Alan Greenspan, the man who reshaped global finance and became synonymous with the 'Great Moderation', has died at the age of 100. The former Federal Reserve chairman, who served from 1987 to 2006, leaves behind a complex legacy: a master of market psychology whose low-interest-rate policies are now blamed for the housing bubble and subsequent financial crisis. London's financial district, ever mindful of its transatlantic ties, offered muted tributes as gilt yields edged lower in a sign of risk-off sentiment.
The benchmark 10-year yield fell 3 basis points to 4.52%, as traders digested the news with the typical City blend of respect and cold calculation. Sterling weakened against the dollar, reflecting a broader flight to safety.
Greenspan's tenure saw the Fed navigate the 1987 crash, the dot-com bust, and 9/11, but his later embrace of deregulation and opaque financial instruments has drawn sharp criticism. 'He was a titan who believed markets knew best,' said a veteran bond trader. 'But his faith in efficient markets now seems quaint, even reckless.
' The Bank of England offered no immediate comment, but its own history of low rates and quantitative easing echoes Greenspan's playbook. As the City pauses to reflect, the grim arithmetic of debt and inflation continues. The question hangs: was Greenspan's century of life a golden age or a prelude to the piper's bill?
