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  • Greenspan has been often accused of overreaction to changes in economic conditions, in particular, of having cut Federal funds rates excessively in 2001, despite the fact that the recession looked relatively mild compared with previous ones, contributing to the build-up of excess liquidity in global markets and over-pumping the real estate bubble in the US.
  • The market was also surprised, when Greenspan hiked rates aggressively in 2003-2005, putting the rebound of the US economy in danger and risking a new recession.
  • However, according to the new revisions of past GDP data, the 2001 recession was in fact deeper and the rebound of 2003-2005 stronger than previously thought. Greenspan seems to have assessed the state of the US economy correctly, as opposed to the average economic analyst and many of his critics.