What Monetary Plolicy Is Supposed To Do & What It Can't
Greenspan didn't control 911, Enron, or the stock market. Monetary policy is supposed to smooth out economic cycles not eliminate them. The combination of low interest rates and inflation can be directly attributed to Greenspan's sound monetary policy. Stock market and corporate accounting excesses are beyond the feds control as are terrorists.
While Greenspan could impact the stock market and often did, that control is far more tenuous than the impact of monetary policy on GDP and infaltion. The connection is basically the indirect one of the Market tends to go up in a growing economy. If it goes up beyond reason due to rampant speculation there is nothing the Fed can really do about it.
Regards,
Mark