Greenspan rejects criticism of loose monetary policy

Alan Greenspan, former chairman of the Federal Reserve, said he "respectfully" disagrees with criticism that loose monetary policy contributed to the housing bubble and bust and ensuing financial crisis. Greenspan said housing activity is not driven by the overnight rates that the Fed sets but long-term interest rates. He also said the housing boom began before the Fed began reducing interest rates in 2001. "I think there is a recalibration of financial history that I find very puzzling," Greenspan said. 

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