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Allen Greenspan

Jenny_Jackson

Jenny_Jackson

Psycho Bitch
Joined
Jul 8, 2006
Posts
10,872
Ok, I'm trying to figure him out. These are my notes on him over time.

1. He was head of the FED for 20 years of prospearity. I give him a point.

2. He seems to have jumped ship when things started to go wrong un Bush. He losese a point for that.

3. During his tenure you rarely saw him, but he was often quoted in the news talking about interest rates, but rarely anything else.

4. Now he's in the news every damn day.

Here's the question - Now that he's out of government, is he actually talking, or is he just pushing his book?
 
He wasn't bad when in office - just look at the fuck-up Bernacke is making of it.

Greenspan had the ability to stroke the financial markets, globally, that big B seems to miss.

Now, Greenspan is pocketing zillions for his pension pot and who can blame him.

Sorry, edited to add: he was pretty old when he walked away.
 
Jenny_Jackson said:
Ok, I'm trying to figure him out. These are my notes on him over time.

1. He was head of the FED for 20 years of prospearity. I give him a point.

2. He seems to have jumped ship when things started to go wrong un Bush. He losese a point for that.

3. During his tenure you rarely saw him, but he was often quoted in the news talking about interest rates, but rarely anything else.

4. Now he's in the news every damn day.

Here's the question - Now that he's out of government, is he actually talking, or is he just pushing his book?
Click to expand...

He didn't have much choice about leaving, so I'd suspend judgment on that point. The guy was really getting along in years. And keep in mind, as Chairman of the Fed, he couldn't say a damned thing without first thinking through what the markets would do by interpreting his words. I don't blame him for indulging in the freedom just talk about stuff without wondering if the market will tank.

A friend of mine is a journalist for for a financial news service and for two years his job was to follow Alan Greenspan--literally. He was expected to be outside Greenspan's house before Greenspan was out the door, stick to him the whole day, and follow him home. Kind of a banker's version of the paparazzi. That kind of scrutiny would make ANYONE tired after 20 years.

He said something interesting on Jon Stewart's show last week...think I'll start a thread on it.

SG
 
Greenspan is directly responsible for the current sub-prime mortgage fiasco. Keeping interest rates at absurdly low levels from 2001-2005 was akin to throwing rocket fuel on a fire. The ensuing (and entirely predictable) real estate bubble lured the unwary, the gullible, and the credulous as a candle attracts moths. It was an unconscionable dereliction of responsibility to keep interest rates below the rate of inflation:

http://www.geocities.com/trysail1952/Gov-CPI_files/WIZARDRY-chart_25227_image001.gif


Similarly, the great stock market tulip bulb bubble of 1997-2000 was also the responsibility of the Fed. Greenspan's bailout of Wall Street and Long Term Capital Management in 1998 was flatly irresponsible.

There is a reason that the Chairman of The Federal Reserve is appointed for a term and is, therefore, supposed to be independent of political influence. The whole purpose of the Fed's independence is to prevent meddling by politicians of all stripes. Greenspan repeatedly caved in to various interest groups; we are paying the price for his foolish 2001-2005 policy now. His beatification and canonization by the media at the end of his term was both premature and preposterous- and wise men knew it.


 
I still miss Paul Volcker. Or are you all too young to remember him?
 
Carnevil9 said:
I still miss Paul Volcker. Or are you all too young to remember him?
Click to expand...
I think he was the last intellectually honest Fed Chair. Of course I remember him. He had the guts and the backbone to do what was needed- he gave the country the hard dose of medicine that the professional politicians would never have the stomach to administer. Yes, it was not fun and, yes, people were screaming for his head, but he was right, he stayed the course, and the medicine made the country much better off in the long run.

The jury is still out on Bernanke. We'll see if he caves in as completely as did Greenspan.

It is not improbable that Volcker cost Carter the 1980 election, just as the 1989-91 real estate recession likely cost George H. W. Bush the 1992 election. The American electorate is fickle, spoiled, dimwitted, impatient and innumerate.
 
Last edited:
It amazes me that the market still moves when Greenspan speaks.

I think he was pretty good at his job, but too loose towards the end to try to keep the party going when the kitty was running dry. More courageous action could have prevented, or at least moderated, the housing bubble and subprime crisis.
 
Now he's written a book and wants to make all that money we lost in the stock market because of him
 
He's book promoting judging from the interview played here. You can tell because he's much more outspoken using 'likely' instead of 'possibly' and 'probable' instead of 'might'.

He's also forecasting a housing price recession in 2030, he's probably fairly safe on that one.
 
neonlyte said:
He's also forecasting a housing price recession in 2030, he's probably fairly safe on that one.
Click to expand...
Obviously it will be in 2028, not 2030. Duh!
 


In graphic terms, here's what Greenspan (and the Fed) did that was the equivalent of throwing rocket fuel on a fire from late 2001 through mid-2005; they kept interest rates BELOW the rate of inflation (look at the green line in this chart):


For all you non-economists, this is essentially the equivalent of paying people to borrow money. Guess what happened? If you said, "People went out and borrowed like drunks on a binge," you'd be right. Those very same people are now suffering one godawful hangover.


 
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