This is a big surprise. One of Greenspan’s first acts when he joined the fed was to vote against Volker and to relax, eventually to the point of near meaninglessness, the Glass-Steagall to the point of near meaninglessness.

Now he is saying that the Fed (by which he means Alan “bubbles” Greenspan) is responsible for the bubbles.

Former Federal Reserve Chairman Paul Volcker thinks the U.S. central bank is to blame for allowing bubbles to inflate asset markets, and says that current Fed chief Ben Bernanke is in a tough spot.

“I think Bernanke is in a very difficult situation,” Volcker told the New York Times Magazine for a story it will run on Sunday. The Times made the text available to the media in advance of publication.

“Too many bubbles have been going on for too long … The Fed is not really in control of the situation,” the Times quoted Volcker as saying, in clear criticism of both Bernanke and his predecessor Alan Greenspan.

No, it really means just bubbles.

Alan Greenspan never found an MBA written scam that he would not allow, or a bad stupid investment that he would not bail out.