Alan Shrugged The Life and Times of Alan Greenspan, the World’s Most Powerful Banker JEROME TUCCILLE John Wiley & Sons, Inc. Alan Shrugged Books by the Author Radical Libertarianism It Usually Begins with Ayn Rand Here Comes Immortality Everything the Beginner Needs to Know to Invest Shrewdly Who’s Afraid of 1984? The Optimist’s Guide to Making Money in the 1980s Mind over Money Dynamic Investing How to Profit from the Wall Street Mergers The New Tax Law and You Inside the Underground Economy Kingdom Trump Wall Street Blues Rupert Murdoch The Mission (with Philip Sayetta Jacobs) Politics as a Noble Calling (with F. Clifton White) It Still Begins with Ayn Rand Dominick’s Van Gogh War of the Werewolf (with Gary Greenberg) Alan Shrugged The Life and Times of Alan Greenspan, the World’s Most Powerful Banker JEROME TUCCILLE John Wiley & Sons, Inc. This book is printed on acid-free paper. Copyright © 2002 by Jerome Tuccille.All rights reserved Published by John Wiley & Sons,Inc.,Hoboken,New Jersey Published simultaneously in Canada Design and production by Navta Associates,Inc. Photo credits: Page 143 top: AP Photo/Nick Ut; page 143 bottom: AP Photo/ Barry Thumma;page 144 top:AP Photo/Marcy Nighswander;page 144 bottom:AP Photo/Doug Mills;page 145 top:AP Photo/Wilfredo Lee;page 145 bottom:AP Photo/Ruth Fremson; page 146 top:AP Photo/Adam Nadel; page 146 bottom:AP Photo; page 147 top:AP Photo/Ryan Remiorz;page 147 bottom:AP Photo/Joe Marquette;page 148 top:J.Scott Applewhite;page 148 bottom:AP Photo/Rick Bowmer. No part ofthis publication may be reproduced,stored in a retrieval system,or transmitted in any form or by any means,electronic,mechanical,photocopying,recording,scanning, or otherwise,except as permitted under Section 107 or 108 of the 1976 United States Copyright Act,without either the prior written permission ofthe Publisher,or authoriza- tion through payment ofthe appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive,Danvers,MA 01923,(978) 750-8400,fax (978) 750-4470,or on the web at www.copyright.com.Requests to the Publisher for permission should be addressed to the Permissions Department,John Wiley & Sons,Inc.,111 River Street,Hoboken,NJ 07030,(201) 748-6011,fax (201) 748-6008,email:[email protected]. Limit ofLiability/Disclaimer ofWarranty:While the publisher and author have used their best efforts in preparing this book,they make no representations or warranties with respect to the accuracy or completeness ofthe contents ofthis book and specifically dis- claim any implied warranties of merchantability or fitness for a particular purpose.No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation.You should consult with a professional where appropriate.Neither the publisher nor the author shall be liable for any loss ofprofit or any other commercial damages,including but not limited to special,incidental,consequential,or other damages. For general information about our other products and services, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety ofelectronic formats.Some content that appears in print may not be available in electronic books. ISBN 0-471-39906-X Printed in the United States ofAmerica 10 9 8 7 6 5 4 3 2 1 To my wife, Marie, who has been at my side through eternity C O N T E N T S Acknowledgments ix Preface xiii PA R T O N E All That Jazz 1 Chapter 1 3 Chapter 2 13 Chapter 3 21 Chapter 4 28 Chapter 5 37 PA R T T W O The Randian 45 Chapter 6 47 Chapter 7 55 Chapter 8 63 Chapter 9 70 Chapter 10 77 Chapter 11 84 vii