He’s right to be worried, and the Federal Reserve is a big part of the problem.
Many of Greenspan’s policies as head of the central bank contributed significantly to the current bloom of crony capitalism. But we have to give him credit for at least identifying the problem publicly.
Mr Greenspan, 87, who now runs his own consultancy business, also criticised a growing “crony capitalism” in the US.
He said: “Crony capitalism is essentially a condition in which… public officials are giving favours to people in the private sector in payment of political favours.”
He said it was prevalent in China and Russia, but had not been common in the US or the UK. But he added: “I am beginning to worry that we are starting in that direction.”