Thank you for a refreshingly honest description of the events. Many other credulous news articles are claiming Greenspan's failure was a function of his naive adherence to Rand's philosophy. That is utterly false, as you've rightly pointed out. Saying that a central banking guru is an advocate for laissez-faire capitalism, is like saying a dictator who rigs elections is an advocate for democracy. For any honest person it is untenable.
For a more in depth critique I recommend the following post starting at the 7th paragraph:
http://www.dianahsieh.com/blog/2008/10/getting-rand-wrong.shtml
]]>