Greenspan Greenspan’s negative alpha

Now that he has left the Fed, what should Alan Greenspan do with his time? He could go back to consulting. Wealthy hedge funds in particular might be tempted to employ their former protector. After all, they are in a better position than anyone else to pay his fees. However, Greenspan’s market advice is unlikely to add much alpha. For one, Greenspan’s record with risk management is spotty. In 1985, Greenspan was hired by Lincoln Savings & Loan, whose management, he claimed, had «a long and cont...