Alan Greenspan is a famous American economist, he served as Chairman of the Federal Reserve Bank (United States os America) from 1987 to 2006. Greenspan attended New York University, where he earned a B.A. degree in economics, and an M.A. degree also in economics. He became chairman of the Board of Governors of the Federal Reserve (The Fed) on August 11, 1987. Two months after his confirmation Greenspan said immediately following the 1987 stock market crash that the Fed "affirmed today its readiness to serve as a source of liquidity to support the economic and financial system"

In autumn 2001, as a reaction to the September 11 attacks and various corporate scandals which where severly affecting the economy, Greenspan initiated a series of interest cuts that brought down the Federal Funds rate to 1% in 2004. On May 18, 2004, Greenspan was nominated by President George W. Bush to serve for a fifth term as chairman of the Fed. Immediately after leaving the Fed, Greenspan formed an economic consulting firm called Greenspan Associates LLC. And ever since, he's been an active voice in the economy, in 2007, Greenspan stated that there was a bubble in the U.S. housing market, warning in 2007 of "large double digit declines" in home values "larger than most people expect." Lately, Greenspan spoke at length on the troubles in the current bond market. When asked if there was any concern regarding financial stability, he responded, "It's obvious that you ought to be looking at the price/earnings (P/E) ratio in bonds to income. We get very nervous when the stock price index goes to high P/E. We ought to be somewhat nervous when the bond rate does the same"

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