How Alan Greenspan moved markets with just one phrase

Alan Greenspan, who led the Federal Reserve for more than 18 years and whose comments could sway investors like few others, has died. Greenspan died Monday at age 100 from complications of Parkinson’s disease. The news came in a statement from his wife, NBC News correspondent Andrea Mitchell. “Alan passed away at our home this morning at the age of 100 from complications of Parkinson’s disease,” Mitchell said. “He was a giant of a man who helped shape the U.S. economy for decades under presidents of both parties, but was always honest in acknowledging his mistakes.” One of the first “rock star” economists, Greenspan was nominated to lead the Federal Reserve by President Ronald Reagan in August 1987 and was reappointed by every subsequent president until 2006, when he was succeeded by Ben Bernanke. During his tenure, he steered the U.S. economy through two recessions, the 1987 stock market crash, the 1997 Asian financial crisis, and the aftermath of the 9/11 terrorist attacks. Widely credited with helping preside over the longest economic expansion in U.S. history, Greenspan was also among the first prominent voices to warn that the stock market could be overvalued during the dot-com bubble. He did so with the now-famous phrase “irrational exuberance,” which he later said he came up with in the bathtub while writing a speech. While “irrational exuberance” sent investors into a frenzy, Greenspan was better known during his tenure as Fed chairman for his measured, often opaque language. It became known as “Greenspeak,” a style built around long, complex sentences and obscure phrasing that could cloud his true meaning. The goal was to avoid triggering a sharp market reaction based on his testimony or public comments. Working his way up Greenspan attended New York University for his entire academic career, earning his bachelor’s degree, summa cum laude, as well as master’s and doctoral degrees in economics. In his younger years, he was a fan of Ayn Rand and once de