"This new market-based workforce, Greenspan said, helped push up growth in the developing world. This in turn fueled a global savings glut that drove down long-term interest rates, leading to an "unsustainable boom" in house prices, he said." (Reuters)
Remember he was always wondering why the long end was moving lower in 2005? Calling it a "conundrum". Greenspan also testified before congress in October, 2008 and said he found a flaw in his ideology. Here is the video (Dissecting Alan Greenspan's Testimony, Finds Flaw in His Ideology). Peter Schiff says it was all because he left short term interest rates artificially low for too long and he warned about housing in 2006 (Bloomberg/CNBC videos from 2006).
Courtesy of Peter Schiff Channel