Maestro — Afterword

1. 1. The economic party of the 1990s boom is over, with U.S. growth near zero by September 2001.
2. 2. Greenspan initially viewed the 2000 slowdown as 'benevolent' and a desired soft landing, but the sudden December collapse surprised him.
3. 3. In December 2000, the FOMC changed its bias from inflation risk to economic weakness, hinting at future rate cuts.
4. 4. On January 3, 2001, Greenspan convened an emergency FOMC call and cut rates by 0.5%, double the usual quarter-point move.
5. 5. Greenspan testified in January 2001 that a tax cut was 'required' to prevent the government from accumulating too much surplus and buying stocks.
6. 6. Senator Kent Conrad warned Greenspan that his tax cut testimony would be misinterpreted and open a Pandora's box.
7. 7. Paul Krugman called Greenspan a 'profile in cowardice' for allegedly trying to limit damage from his tax cut support.
8. 8. By April 2001, Greenspan faced unprecedented criticism as the economy worsened despite aggressive rate cuts.
9. 9. Greenspan believed the high-tech bubble caused the 2001 downturn and that he had warned about it, but his warnings were too ambiguous.
10. 10. By September 2001, Greenspan admitted the stock market might not be undervalued and that the business cycle was not dead.