Well yes, but if you read his full excuse, Greenspan congratulates himself on not preventing a bubble in 1996 at the cost of a recession and further on being rather good at tidying up after the bubble burst.
Naturally he can see no credit bubble nor housing bubble. Quite why this should fill him with confidence when he failed to see the stocks bubble in front of his nose is something of a modern mystery.
This one shows more in common with our South Seas Bubble than the US stocks bubble in the late 1920's. Note that The Great Depression was the depression prior to the bust after that one before casual usage effectively renamed it.
Various phenomena are lumped under the term "deflation". Purists would claim that deflation is purely the monetary phenomenon of a falling money supply rather than it's usual effect on the general price level (though this means that Japan didn't suffer deflation during the last decade despite a falling CPI).
Deflation (as in price falls) due to technological inprovement is effectively a kind of "cost-push" deflation. This would sit quite happily alongside moderate economic growth and few would describe such conditions as bad. British history over the past 4 centuries has seen as many years of deflation as inflation and most of those years included economic growth.
"Demand-pull" deflation of the sorts seen in debt deflations following the bursting of a credit bubble are generally viewed as more unpleasant, though they're simply the realignment of prices, and thus incentives, which enable the economy to right itself and prepare for new growth.
Both sorts have accompanied technological revolutions. There were speculative booms and busts over canals and railroads for example, prior to the one, driven by electricity and the motor car, in 1929.
No, deflation is the cure for this. What we should be worried about is credit bubbles and the misallocation of capital and resources which accompany them.
Sadly, I think human nature is such that we can't be trusted too long with credit. We're just not as careful with other people's money as we are with our own. Quite what to do about it, absent a kind of financial police state which I hope we'd all see a bad thing, I can't imagine.
Then again, there's Schumpeter and his "creative destruction". Perhaps the overall effect of booms and busts is that various things get tried in the booms while the turkeys get weeded out in the busts and progress is overall better than otherwise, despite the lemmings who get dragged over the cliffs in their overenthusiasm.
Whatever, I don't see things changing any time soon. I expect there'll be another bubble along in 2070 or so.
FoFP