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Alan Greenspan: "The Financial System Is Broke"
For the definitive confirmation that the Fed is and has always been very open to, at least philosophically, pushing the market higher no matter what the cost (if not in practice - they would never do that, oh no, Liberty 33 would never stoop so low), is this quote from former Fed chairman Alan Greenspan who was on Meet The Press earlier, where he said the following stunner: "if the stock market continues higher it will do more to stimulate the economy than any other measure we have discussed here." In other words, the Fed's dual mandate of maximizing employment and promoting a stable inflation rate have been brushed aside, and the one and only prerogative for Chairman Ben currently, and for the short and long-term future, is to keep the Dow Jones (because nobody in the administration, even the Fed, has heard about the S&P yet), above 10,000. Yet Greenspan, who now apparently is off the reservation concludes with this stunner: "There is no doubt that the federal funds rate can be fixed at what the Fed wants it to be but which the government has no control over is long-term interest rates and long-term interest rates are what make the economy move. And if this budget problem eventually merges to the point where it begins to become very toxic, it will be reflected in rising long-term interest rates, rising mortgage rates, lower housing. At the moment there is no sign of that because the financial system is broke and you can not have inflation if the financial system is not working." In other words, we will be in deflation until the broke financial system becomes unbroke... and then we will have hyperinflation.
Well, ladies and gentlemen, Q.E.D.
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Stop buying and stop selling?
Ah... a little extreme. I'd rather go with the suggestion above. Which is quit using banks.
I don't use credit cards and I only use credit unions. I buy locally whenever possible.
Title should read:
"I Broke the Financial System" by Alan Greasepan
You cannot have inflation if the financial system is not working ?
"if the stock market continues higher it will do more to stimulate the economy than any other measure we have discussed here."
Unfortunately, Mr. Greenspan fails to understand that the value of the stock market is an output NOT and input...
"if the stock market continues higher it will do more to stimulate the economy than any other measure we have discussed here."
He's also calling for irrational exuberance ;-)
sorry for that flag, but you are in Lewis Carroll land here, first the sentence and then the evidence. the economy FOLLOWS the stock market, even Bob Prechter has this stapled on his forehead. If only BB could by fiat declare the DJIA to be 36000 he could solve all ourproblems. and by pumping the PPT and allowing the HFTs to run the bid up with nothing behind it, then we can do it. what do we do when we get there?
by then it will be football season, punt baby!!!
eat the beast, pay cash.
It would've been very appropriate to stop G-man right after the "financial system is broke" to tell him one thing... No shit Sherlock!
I'd feel safe to bet this guy would tell me one of the following: the sun is bright on a cloudless day, ice is cold, or women are impossible to understand.
Uh Boys, The Dow futs are up 57. Excuse me. I gots me some buying to do. I hope you dont mind, I used one of your chart designs for use in my bedroom as wallpaper. It enhances my Bong therapy. I hope i didnt infringe on any copyright laws
MAESTRO!
http://williambanzai7.blogspot.com/2010/08/why-have-we-not-tarred-and-fe...
Mental Maestrobation.
Green(peter)pan was the greatest "stage" man of the 20Th century, and if his lines were by his own pen than a great writer to boot! He delivered exactly what his followers sought, which was financial security (eg ponzi dreams of living well on other people's money) in our lifetime.
The Pan knew that his tales would help deliver untold riches to his pirate collaborators.
Food and water bichez!
There are a whole shitload of genius SOB's out there......how do the bastards at Liberty 33 get out'd into the sunlight of public recognition if they exist? Muckruckers? PI's?
Recall the Briefcase Watch on GE hype TV back in the day.. Looking back on it he was nothing more than the lead 3-card monte man. Now look at him, and us..
Alan Greenspan may be redeeming himself now by getting into the business of truthtelling...thank you Dr. Greenspan...
He must have found his heart and soul again with age because his retirement allowed him to stop having to stomach the massive propaganda and thievery required by his bosses, the owners of the federal reserve, whose main objective is to enriching their privately held company at taxpayers expense.
DROPPING OUT!
It does not matter anymore what these characters do or say on the TV. This is all planned, these guys are not off the reservation, they are just the perfect reverse barometers of what is going on.
Larry, Timmy, Benny, Team Barry Obama, the Corporate Borg and the BIS are like the fastest jets streaking across the skies of Afghanistan. They have the ultimate radar, J-DAMs, satellite coms, but they will never hold the ground - and WE ARE GOING TO GROUND just in order to survive this crash.
The US is never going to pay off these fake debts and everybody now knows it. Try looking at the street you live on, talk to your neighbors and stop reading the charts to figure out where your family is headed.
Their plan is to take it all and there is no power that can stop them.
at some point the hedge funds, the Geo Soros style raiders, stock market vigilanteds call it what you will, will take down a market being run higher on smoke and mirrors, because obviously there is no room to buy with any size. it likes trying to put a billion to work in microcap company., they will break the back of the Federal Reserve, and then (pardon me Obamaites) they you will see real change
broken since 1982 - thats when the 401k programs started. Look at what the Dow has done since 1982 on a linear scale !!
...i agree...then do a regression line for the history of the Dow to see where it "should" if the DOW will "revert to the mean"
As long as people realize Greenspan was acquired by John Paulson (yeah that Paulson) in 2008, http://nymag.com/daily/intel/2008/01/john_paulson_aquires_an_alan_g.html it's all good. I don't think Greenspan even realizes that he is the Mark in this game.
on Sun, 08/01/2010 - 14:11
#498876
"That is such a negative comment! I think you are not getting enough.
And your 'frustration' is being 'magnified', as shown here.
Make some good trades, and buy that bottle of viagra! Geezus!"
Can I have a writing expert over here, please? We may not have the same "SuperBull" we have all come to know and love, amongst us.
"SuperBull" appears to have morphed into a different writer. At least that's what I'm hearing in this post. Or "SuperBull" just had some sort of a mini-meltdown.
Anyone sense the difference in writing style? Crack in the facade? Look at how/what SP was responding to. See below.
by Pondmaster
on Sun, 08/01/2010 - 13:35
#498853
My first thought as well before posting reply to this article . And it is not uncommon for negative personal traits to be magnified with senility , or dementia . I think Greenspan suffers from the later , and his once , much more subdued ( hidden) sociopathic tendencies are in full bloom . And so that of his progeny, the eldest son Bernanke , fell right under the tree .
Hey, SuperBull, if you had someone take over while you went to take a leak...
Amazing. For one of the most senior Central-Bankers to come out with an ultra-simplistic soundbite at a time like this.
Hopefully, at the bottom of the hundred-odd comments no-one will see this one; the markets never bought the recovery because the law was point-blank railroaded. I know, you can have the suport of the people, but the moment when you flagrantly break the law- I don't know why, it's just a law- the people get consternated and go on strike, or something. That whole HFT-liquidity-SEC thing, the administration just pretended it wasn't there, that was never going to fly.
Why is this irrelevant old geezer even interviewed? NO ONE CARES what he has to say.......
+1 quadrillion and a bag of chips. The 11.5 oz kind.....hell, maybe it's 11.25 now
edited
And Alan helped break it.
What is this crap? Is he now trying to make ammends so he can get into Heaven?
Fat fucking chance
B9K9, Your post are usually informative and reasonable. If you haven't chosen your new home yet, how about the great state of Jefferson? You won't get better anywhere!
I live in a small mining town in the middle of the frozen north far away from Wall Street. So, how do I communicate my disgust with the amount of corruption I see and read about. I expect some corruption as I'm not a child; but this is off the wall folks. Kinda pisses me right off. Remember, the Internet will prove to be as revolutionary in every sense of the word as the printing press was in its day. It's only a mater of time X 10. Everything is faster now. All it takes one person. One single person to dance out of step. Scary when you think about it. How well do the elite sleep?
They are no better at managing a nations finances than you or I. And, they do not understand and I could add are too blinded by orothdoxy to accept that markets are bigger than the fed, or all the world's feds for that matter. The fed(s) just haven't gotten that yet.
Hard lessons are hard learned. If I were the Chinese I would ask for the USA to allow each house that it would otherwise own to be occupied by in-migrant Chinese family. That would take care of all of the USA's financial and housing problems; not to mention spur consumption in one shot; at no cost to the treasury. China I'm sure would see the benefits.