Rating: 
Summary: Seriously Flawed, Superficial Look at Greenspan's Leadership
Review: Before commenting on the book, let me state that Dr. Alan Greenspan has been the best chairman of the Federal Reserve that we have had. He has risen well to every challenge and the current record-setting economic expansion is partly a testament to his skill both as an economist and as a government leader. I give Dr. Greenspan far more than five stars for his handling of the market meltdown in October 1987, persuading the Clinton administration to lead on cutting the budget deficit, nursing sick banks back to health, in keeping a sharp focus on inflation fighting, for being vigilant about the frothy levels of stock prices, getting us through the Mexican, Asian, and Russian financial crises, and for vastly improving the methods used to track the economy.To the potential reader of this book, let me give you two cautions. If you like exciting reading, go elsewhere. Economics and monetary policy are pretty boring stuff, and the way they are treated here makes them more boring than they have to be. Second, if you want to learn about the significance of Dr. Greenspan's role at the Federal Reserve, skip this book. It misses the target in that area. Mr. Woodward, by comparison, is lucky I gave him 3 stars. The man treats biography as though he is uncovering the Watergate scandal, and the end justifies the means. For example, he does not cite sources. This means that the reader cannot judge for her- or himself what bias may be present in the material being quoted. For example, the first pages of the book slam James Baker in every possible way short of accusing him of being a pedophile. Who is this source (or sources) who is (are) providing the dirt? What do they have to gain by blackening Mr. Baker's reputation? I would like to know before I take the information seriously. Any other biographer or historian would tell you. The second problem is that Mr. Woodward does not seem to know very much about economics or the Federal Reserve System. For there is little about either subject in a book that primarily focuses on Dr. Greenspan's role at the Fed. For example, the book does not even describe all of the legislative objectives that have been set for the Federal Reserve by Congress. The Humphrey-Hawkins legislation about encouraging full employment is first mentioned more than half-way through the book. Those who are not familiar with the subject wouldn't have guessed that Dr. Greenspan was supposed to be addressing this subject and was reporting to Congress regularly on it as Mr. Woodward reports on what Dr. Greenspan was doing to fight inflation. Now, most will agree with me that economics is a pretty difficult subject to write about. But Mr. Woodward could have written about someone else rather than Dr. Greenspan. In this book, economic events, thoughts, and analyses are usually treated as either minor background events or as gossip items to reflect on personal qualities. As such, the economic events and implications are greatly oversimplified. For example, I doubt if many readers can understand the obscure references in the book to Dr. Greenspan's successful search for the missing service productivity measurements. At a minimum, Mr. Woodward needed a coauthor who is an economist to add some depth related to the book's treatment of Dr. Greenspan's work. A third major problem with the book is that Mr. Woodward makes a great deal out of unused contingency planning in crises. These are dropped on the reader to suggest we were a hairs-breadth away from financial Armaggedon. That is like reporting the fact that we always had bombers in the air with nuclear weapons during the Cold War as suggesting that we were always about to bomb the USSR. All government agencies are always preparing for contingencies that will never occur. That doesn't mean that the contingencies are imminent. Mr. Woodward, for example, tries to make a case for having us think that President Reagan might have closed down the New York Stock Exchange in 1987 and that it could have taken a week to reopen. This is pure sensationalism in my view. It probably helps sell books. The strength of the book is based on the fact that the Federal Reserve releases the transcripts of its deliberations. Mr. Woodward has liberally used these transcripts to give you a flavor of the consensus-building process he uses to lead in creating policy and interest rate decisions by the Fed. This raw material in interesting, even if Mr. Woodward's characterizations of these transcripts frequently are not. He makes a great deal about differences between Alan Blinder and Dr. Greenspan. That is much ado about nothing, and simply makes the book longer. Achieving consensus in Dr. Greenspan's Fed is a lot like the EDS television commercial about cowboys herding cats, especially after President Clinton began making appointments to the Fed. One of Dr. Greenspan's great strengths is his approach to preparing for decisions. He is unusually open-minded, willing to listen, and eager to get better information. This makes others more willing to listen to him, and to pay attention to this views. It also allows him to improve his own views in useful ways. The book does a reasonably good job of exposing the benefits of this approach. In two other minor areas, the book is clearly deficient. Mr. Woodward fails to discern the usefulness of Dr. Greenspan's complicated communications. You can read whatever you want into them. The Federal Reserve chairman is required to make more speeches, deliver more testimony, and to answer more questions than just about any other public official. Usually, the best result is to have to no impact on the financial markets. Dr. Greenspan is brilliant in performing these tasks in a neutral way. To listen to Mr. Woodward, you get a sense that Dr. Greenspan's convoluted communications are solely some sort of genetic defect acquired from his father. Mr. Woodward does notice that stock price levels are high, but fails to fully appreciate how much the surging markets reflect a failure of Fed policy. Clearly, the interest rate raises we have going on now have been aimed more at the stock market (in a preemptive strike against future inflation) than against anything else. How will it all turn out? Much of Dr. Greenspan's final reputation will be determined by this open chapter in the story. I wish him well. After you have finished reading this book, I suggest you consider the next biography you plan to read. Ask yourself these questions: What does the biographer have to know about to be competent in this area? Who would be an ideal biographer? How much time needs to pass before a reasonably objective and complete biography can be done? As a result, you may find your choice of subjects more limited than you like. Certainly, this book would fail these tests. As for Mr. Woodward, please go back and write about crooked politics. You do that well, and your methods and skills are more appropriate there.
Rating: 
Summary: Laissez Faire's Oskar Schindler?
Review: While this is an excellent journalistic portrayal of a brilliant man handling a singularly stupid instititution, there is a problem. The author does not really understand that Greenspan's quasi-Libertarian sympathies and grounding in Objectivism, the philosophic approach of Ayn Rand, determine Greenspan's decisions in critical ways. While Greenspan has never been shy about his belief in minimal government, tax abolition and tearing down the Federal Reserve, he has been quite ingenious in letting those who wish to see differently see as they choose. It is like reading a biography of Jefferson that assumed he was a supporter of the Monarchy--and Jefferson is quite happy not to disabuse them, if he can get a do-nothing king. Greenspan believes that the Federal Reserve is a coercive monopoly, a morally evil and politically pernicious institution. It can do only harm. Period. Therefore he has seen his role from the beginning as keeping it from actually doing anything--so people can better and more freely function--while bedazzling a suspicious Congress and and ignoramus journalists such as the author. Period. Greenspan has been increasingly influencing the DC syndrome since President Ford, and it is a mistake to ignore his role then and focus on his work, so to speak, in the Federal Reserve. Using rococo rhetoric and building anticipation by self-canceling minor moves--Wow! Greenspan raised interest .025 percent in January!Wait...Lo! He lowered in right back in February--Greenspan has for years performed what Libertarians have dubbed "The Old Jedi Mind Trick" every time he ventures to speak or does anything in the DC Beltway. Greenspan made his views plain in Ayn Rand's "Capitalism: The Unknown Ideal" and is on record as seeing the US Government and economy as a fascist-socialist mess. He is from that point of view the Oscar Schindler of the Economy, keeping financial interventions at a minimum and, with his Libertarian approach (as far as possible), being responsible for much of the n boom and recovery. When viewed from this perspective, the book is even more interesting, particularly the many points where the author is clearly misdirected. It is like reading Schindler's biography written by a hack of Goebbel's, and a clear attempt to co-opt Greenspan back into the Establishment. This creates a fascination all its own and lost on some reviewers happy to take the book at face value. Would Greenspan be wise to resign now ? The growth of hidden taxes, forfeitures and Catch-22 regulations are destroying the US infrastructure. If this continues, he will be blamed, Hoover-like, for not doing things not in his power. Indeed, one wonders at the growth of media attention on Greenspan. Is he being set up? At one point the hysterical US Government and its journalistic proxies blamed Libertarians for Y2K. What next? One sign: despite being in line to succeed the President, Greenspan maintains a modest office smaller than his clerks' and refuses de-rigeur political honcho limousines. For that he is hated by many. The meaning of that modesty is quite, quite, clear to them: He plays the twisted game, but he ain't on the team.
Rating: 
Summary: Economics for the Layman
Review: The perfect book to answer those who speak of the "Clinton" economy, and are likely to slam the book without even reading it. While it may be unerving to learn that the most powerful man in American politics is not elected, for those frustrated by economic fedspeak, this book lays out the way the Fed works in a way the interested layman can understand. You'll understand why some consider the Fed the 4th branch of government.
Rating: 
Summary: boring indeed
Review: I picked up this book at the airport and read it on my flight from Orland to LA...it's an easy read. However, it promises more than it delivers. Arguably Greenspan is as powerful as the president and I expected some insight into his understanding of the "new economy" or at least how he was able to modify the role of Federal Reserve Chairman to meet its challenges. Neither was sufficiently developed. I agree with my reviewing colleague from Sausalito: the book is nothing more than a chronological narrative with occasional observations that Greenspan is a social climber, politically savy and as articulate as the Oracle of Delphi. OK, so he instituted "asymmetric directives". Big deal! Who couldn't realize that fast executive action is necessary in a volatile market? After promising some insight into Greenspan's view of the new economy, the book belabors the point that Greenspan is as perplexed as others why old parameters may not apply to emerging paradigms. I recommend you buy this book on the aftermarket or seek other authors.
Rating: 
Summary: Boring
Review: The author tries to make this book exciting. He starts with the crash of '87, which happened just after Greenspan took over. The problem is, the material is pretty dry. There is just not that much excitement to a book that's basically about a guy pushing the interest rate up or down 1/4 percent. Greenspan cancels a speech and issues a one sentence press release saying the Fed will continue to support the financial markets. Wow! Then he goes to a meeting but doesn't say much because he only has been on the job for six months. Wow! Then some presidential aids phone and he takes their calls right away, so they come to think of him as their close pal. Oh my! This book is a thrill a minute. It's just like being there, as Greenspan ... sits down in his chair. You'll imagine you're in the room as Greenspan decides he won't fully say what he means, so as not to offend anyone. Hold on tight while our chief accountant looks over the numbers. Get scared when James Baker admits he has no idea what's going on....
Rating:
Summary: One Very Good Reason NOT To Be The Next President
Review: I thought it was never going to happen after reading a series of books about Alan Greenspan and The Federal Reserve. Prior books seemed to have had as their goal convincing any reader that a PHD in Pure Math was required to understand The Federal Reserve. Those who felt readers needed to have the English Language explained to them authored a book I recently reviewed. Just as I believe there are literally millions of Americans who have learned more about The Electoral College in the last 10 days than they did during how ever many years of school they attended, anyone who reads this book will find that The Federal Reserve while far from a simple agency performing simple tasks, it is understandable to anyone who has an interest in learning. Mr. Bob Woodward has assembled a highly readable book, together with a brief index of terms, which makes this work invaluable. This would be so at any point in our History. But as we now have more Families and individuals whose finances are directly related to the financial markets, the book is important for everyone to read. During the campaigns the voters are warned/scared into thinking of the evil that will befall them if a given Candidate becomes President, and appoints Supreme Court Justices. The congress that will assemble in January is so balanced, especially the Senate, that no matter who eventually wins, what was an election and now is a disgrace, is not going to get any judges confirmed that are at either end of Constitutional Interpretation. But what of The Chairman Of The Federal Reserve? Mr. Greenspan is currently in the midst of a remarkable 4th term as Chairman, and many would argue a Chairman whose performance has been unprecedented. At 74 years of age how much longer will he want this position? He comments that having the job "is like eating peanuts" in that a person cannot stop, and I hope he does not. However I don't believe immortality is amongst his skills, and whoever is President when he ceases to be The Chairman, is going to have a huge problem. Mr. Woodward explains why this is so by using some of the very public, and some not so public events/crises that any reader will have knowledge of, if not all, then some of the events he describes. October 1987 is familiar, it also moved into the background rather quickly for such an event. This book will rewrite those days of 1987, and explain just how close to a true financial disaster it was. After you read what went on to restore the markets, you will be pleased that firstly, you didn't know how bad it really was, and secondly, that Mr. Greenspan was at the helm. Other events that are reviewed are, Mexico's idea of running an economy, and the US Bankers that lent your money to the Country, and how that situation was delicately finessed. The LTCM near disaster, while perhaps not as familiar to some, lays bare the wonderful world of arbitrage. For it is here that 5 cents gets you a dollar, winning is spectacular, and the consequences of losing are almost difficult to fathom. If you count stocks as a form of gambling, arbitrage make stocks look as safe as keeping the money in your mattress. The book is full of actual transcriptions of various Federal Reserve meetings. This brings the reader into the room as a witness to a Chairman who not only clearly understands the economy better than anyone, but who is also a master politician and consensus builder. Universally liked he is not, as several Vice Chairman learned. The Federal Reserve has become Mr. Alan Greenspan, and since he was first appointed by President Reagan, then President Bush, and finally President Clinton, you will learn why. I found his relationships with the Presidents he served to be fascinating, and I was surprised by the President he felt best understood the economy. The material if accepted by the reader may cause one to reevaluate some long held beliefs about a variety of powerful Washington figures. This book works as Bob Woodward is as knowledgeable about Washington D.C., and has access to the players that is possibly without peer. He has earned the credibility he brings to his work over decades of writing, and the meticulous notes he includes give even more validation to the reader who requires it. A book for all to read, for when was the last time a specific Supreme Court case directly and immediately affected your life? When was the last time The Chairman of The Federal Reserve changed your net worth with 2 words? Remember "Irrational Exuberance"?
Rating:
Summary: Fact or Fiction???
Review: Here we go again. Another Woodward book that makes a nice story, but is not sourced. Woodward does not note his sources and so the reader does not really know if this a work of fact, fiction or a little of both. Shall we all just believe Bob and take him at his word. Hahahhah Give me a break!!!
Rating:
Summary: Don't slam it until you've read it
Review: You have to wonder about folks who slam a book without reading it based on personal ideology alone. Regardless of ideology, Woodward reveals the workings of the Federal Reserve in a way which does not require a degree in economics. While the nation is riveted on a partisan struggle for control of the presidency, it is fascinating to understand the degree to which this agency affects our economy and our lives. Woodward decodes the system for the lay reader, revealing the power of the Fed and Greenspans significant power within.
Rating:
Summary: Unconventional Wisdom Triumphs in Unconventional Times
Review: I am quite taken with this book, which at 234 pages is "just right" and well crafted and edited to tell an important story. This is a story about applied intelligence in the finest sense of the word. It is a story about a man well-versed in traditional economic research, traditional models, traditional assumptions about the marketplace, who was put into the most important position in the global financial system at just the right time. His intuition allowed him to detect unexplained changes in productivity and to direct new lines of research that helped persuade more conventional authorities to follow his strategy. This is also a story about a uniquely successful partnership between a Republican central banker and a Democratic President-the very heart of the story centers around Greenspan's ability to persuade a very smart President that deficit reduction was the critical ingredient for a long-term restoration of American prosperity. Aided by an equally smart Secretary of the Treasury, Rubin, it was the President's initiative to reduce the deficit by over $140 billion dollars that allowed all else to follow. There is a clear message here for those who would reduce taxes before finishing the job of eliminating the deficit. As a professional intelligence officer, I am very very impressed by the author's recounting of how Greenspan actually "does" the job of intelligence collection and analysis at his level-the Central Intelligence Agency could learn a great deal from this man. The integration of constant (every fifteen minutes) monitoring of key indicators, the preparation of detailed research and statistics reports, and-by far the most important element-the continuous cycle of direct telephone calls and personal meetings across all sectors of the economy and around the globe, define what must be the most efficient and effective and valuable directed intelligence operation in the world-and one that does not steal the information it needs! There are a number of observations throughout the book that are helpful at a strategic level: 1) deficit reduction is the single best thing any President can do-that enables the Fed to be effective; 2) we forget so quickly how desperate the American economy was in the late 1980's-in a volatile world it would be all too easy to enter a recession or have a major financial panic; 3) structured decision-making is extremely dependent on the models and the data-Greenspan's place in history is assured because he had the intellect and the patience and the gut instincts to realize that the data was incomplete or too aggregated and the modeling assumptions were dated and no longer sufficient to plot the course of the new economy; 4) the psychology of the marketplace is at least as important as the reality, and is likely to be hurt by loose-cannon White House elements with good intentions but out of bounds; 5) even the so-called best and brightest in any Presidential administration will categorize new ideas they do not understand as "incoherent if not idiotic", as Greenspan's emerging new ideas were labeled by the top Treasury economists; 6) the concept of wealth redistribution fails to understand that even if $1 trillion from the 225 richest people in the world were redistributed to the poorest of the earth, this would only give them $1 a day for a year-Greenspan's focus is on underlying structural changes and the advancement of capitalism such that wealth can be created for the poor on a sustained basis; and 7) there will always be wild cards, such as the Savings & Loan crisis, the LTCM (Long Term Capital Management) crisis, and the Mexico crisis, that require a financial management or central banking network able to capitalize on personal relationships and deep knowledge to find impromptu solutions. On the latter note, it makes one realize that in an increasingly volatile marketplace, there should probably be much stricter limits on "leveraged" actions, where the majority of the money for gambling on the stock market or in the bond market-as much as 95% of the money-is borrowed and therefore likely to be defaulted if the wrong bet is placed. There is nothing in the book regarding any steps that Greenspan has taken or is considering in order to bring added stability to the marketplace. If I have one criticism of this otherwise superb book, a book that sheds light on many aspects of the Fed and its Chairman, it is that there is no hint here of what Greenspan has learned that might lead him to suggest legislative or regulatory changes intended to improve public transparency of key economic transactions, limitations on risk intended to prevent one rogue elephant (e.g. LTCM) from bringing down the market, and so on. I would have liked to see a summation, even a two-page appendix, on the "before" and "after" economic models that Greenspan helped to change, and also some sense in the conclusion of what needs to be changed to keep future market crises within the bounds that can be managed by the Fed-Greenspan clearly has broad shoulders and a broad mind, but he can't carry the load forever and this book fails to focus on what changes are needed to institutionalize the Greenspan wisdom.
Rating:
Summary: Secrets of the Temple, continued
Review: If you want to put this long awaited work by Bob Woodward in proper context, sequence, and prespective, I highly recommend Fed nuts first reading "Secrets of the Temple: How the Federal Reserve Runs The Country", by William Greider, long time editor & journalist of the Washington Post. In modern times, William Greider's work is akin to that of the Old Testament, Moses, and Paul Volker years (1989-1987) switch to Monetarism Policy during Carter's last year in office in the Fed's renewed war on inflation, and Woodward's work could be considered the New Testament with Alan Greenspan's coming when the war on inflation had already been won, 1987 - present. Both Greider & Woodward are superb writers.
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