Greenspan: Ouster Of Hussein Crucial For Oil Security - washingtonpost.com

good stuff:

GREENSPAN HITS OUT AT BUSH ADMINISTRATION

The former head of the United States Federal Reserve, Alan Greenspan, had a reputation for being just that - reserved - in his public comments. But he's broken the mould in his memoirs, taking surprising swipes at the Bush Administration over its economic management, and Iraq. The book's claim most likely to annoy the White House is that the Iraq war is "largely about oil."

In public, they seemed to get along beautifully, right down to the day Alan Greenspan was replaced as chairman of the Fed.

GEORGE BUSH, US PRESIDENT: He has dominated his age like no central banker in history. He has contributed to a better life for all Americans and I thank him for his service.

But it turns out that for years, Greenspan had been gritting his teeth, silently disgusted with Bush's big budget deficits. In his book, he writes: "My biggest frustration remained the president's unwillingness "to wield his veto against out-of-control spending."

A White House spokesman shot back: "We're not going to apologise for increased spending "to protect our national security."

His book may change the way many Americans view Greenspan, who's usually careful and convoluted when he speaks.

ALAN GREENSPAN, FORMER US RESERVE BANK CHAIRMAN: How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?

But in his book, he says in clear language he is disillusioned with fellow Republicans and that they deserved to lose the last election. Greenspan himself has been under attack lately. Critics charge his policy of low interest rates resulted in too many home mortgages going to people who have now lost their homes. Tonight on 60 Minutes he says his critics are wrong.

ALAN GREENSPAN: It was our job to unfreeze the American banking system if we wanted the economy to function.

Greenspan especially upset the White House by writing in his book that the Iraq war is largely about oil. Today on ABC's This Week, Defence Secretary Gates said Greenspan is wrong.

ROBERT GATES, US DEFENSE SECRETARY: I know the same allegation was made about the Gulf War in 1991 and I just don't believe it's true.

When I asked a White House spokesman about Greenspan's charge, he dismissed it with what seemed like bitterness, saying, "I will restrain myself. The reasons we went to Iraq are well understood and had to do with weapons of mass destruction." As for Greenspan's opinion, the spokesman said, "That sounds like Georgetown cocktail party analysis."

Transcript Archive.