DRUCKENMILLER: The Economic Mess Is Greenspan's Fault

Legendary billionaire hedge fund manager Stan Druckenmiller, who rarely does media appearances, sat down with Bloomberg TV's Stephanie Ruhle for an hour-long interview.

Druckenmiller, who called the housing crisis, touched upon a gamut of issues such as entitlement spending, what's going on in Washington, D.C right now and the hedge fund industry.

As for the recent economic downturn, here's what he said when he was asked who is to blame:

"It's hard to tell who's going to be blamed-- if we don't act and this occurs…There's plenty of blame to go around. If I had to analyze how do we get into the financial crisis, I would say it started way back in the '90s when then-Chairman Greenspan refused to address the dot-com bubble, came up with some new theory of productivity and therefore we're not going to have a problem, so all these NASDAQ companies who were never going to earn money went to hundreds-of-times earnings and then of course, we had a major bust. And instead of taking a recession and having the cleanup…they needed an offset. So they created the housing bubble. So now by hindsight, everybody says, 'Well, you had these horrible Wall Street actors,' and I'm sure there were quite a few horrible Wall Street actors. And I don't doubt that they were part of the problem. In fact, I know they were part of the problem. But I also know it was negative real interest rates for 12 outta 20 years that enabled these actors to do the things they were doing and incented, yes, incented them to go out and gamble the way they were gambling."

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