2009 Financial crisis: A. Greenspan

In the  2009 crisis economists, central bankers and politician at the heart of the meltdown were identified – their actions had led the world into the worst economic turmoil since the Great Depression. On the sixth  anniversary of the credit crunch, have you wonder what are they doing?

 Central bankers 

Alan Greenspan, chairman US Federal Reserve 1987-2006

A disciple of libertarian icon Ayn Rand, Greenspan became chairman of the Fed just in time to save the global economy from the 1987 stock market crash from becoming a full-blown disaster. He went on preside over the boom years of the 90s and lead the US economy through the aftermath of the September 11 attacks and was widely referred to as an "oracle" and "the maestro". 

But Greenspan's super-low interest rates and consistent opposition to regulation of the multitrillion-dollar derivatives market are now widely blamed for causing the credit crisis. Under Greenspan's tenure the derivatives market went from barely registering to a $500 trillion industry, despite billionaire investor Warren Buffett warning that they were "financial weapons of mass destruction". 

His rock-bottom rates encouraged Americans to load up on debt to buy homes, even when they had no savings, no income and no job prospects. These so-called sub-prime borrowers were the cannon fodder for the biggest boom-bust in US history. The housing collapse brought the global economy to its knees. 

He was given an honorary knighthood in 2002 for his "contribution to global economic stability", but in 2008, at a Congressional hearing investigating the causes of the financial crisis, Greenspan finally admitted he "made a mistake in presuming" that financial firms could regulate themselves. 

"You found that your view of the world, your ideology was not right, it was not working?" Henry Waxman, the committee chairman, said. 

"Absolutely, precisely," Greenspan replied. "You know, that's precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well." 

After he quit the Fed, in 2006, Greenspan joined Pimco, the world's largest bond investor, as a special consultant. Pimco's co-founder Bill Gross said Greenspan had helped make the firm "billions of dollars'' in his role as a consultant. Gross said Greenspan's "brilliance" was a "big money saver for us''. "He's made and saved billions of dollars for Pimco already,'' Gross said in 2008.He has also advised Deutsche Bank and hedge fund billionaire John Paulson. 

Greenspan has also found time to criticise current Fed chairman Ben Bernanke's programme of quantitative easing. "I've stayed away from commenting on Fed policy," he said on US TV earlier this month. "I will say this, however, that the data do show that the expansion of assets has had very little impact on the economy, for an important reason, that we've created a major increase in the asset side of the Fed balance sheet and a very large trillion and a half increase in excess reserves."