I am not an economic genius, but simple sense would tell you when you have the fox guarding the hen house, there will be chicken for dinner.
Both Mark and I, since this stuff started during Reagan, have been, to use Richard Clark's phrase, running around with our hair on fire. Deregulation has lead us to this point. The free market is a fallacy and a very flawed ideology, proven in the last month or so by what has happened as a direct result of the implementation of this idea that the market will govern itself.
The 'oracle' had a deeply held philosophy, which allowed him to be 'blindsided'. He has been a great admirer of Ayn Rand and was so committed to the idea that he couldn't stop to consider the logic.
There are consequences to our actions. For Alan Greenspan, he has to live with the results of his policies, and what probably means more to him, he has to live with his golden aura turned to brass.
For those citizens who don't pay attention, or vote based on an over-hyped social issue, those who have become so entwined in the 'me first, to hell with you' mentality of the past 30 years; there are consequences to your actions. G. W. Bush and his economy is one of them. My writing this stuff on a blog is another.