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Greenspan: "The Stock Market Is Great", But The Economy Feels Like In "The Late Stages Of The Great Depression"
While conflicting economic data leaves hope for both buills and bears, Alan Greenspan warns that, unlike Yellen, "US economic growth is not strong." He then slays another pillar - suggesting the exuberant job growth is anything but (as he focuses on weak productivity as he pinpoints entitlements as "crowding out capital investment" in America. The maestro then breaks the golden rule of central bankers and explains how The Fed was, in fact, the main driver of the P/E multiple expansion in stocks; and when asked if this ends as badly as last time? He concludes "It depends...When real interest rates start to move up, that's when the crisis could hit." The interview is somewhat stunning in its honesty (for a central banker) as he warns global "effective demand is extraordinarily weak - tantamount to the late stages of the great depression."
Some other excerpts...
"Lower long-term rates is not a conundrum, its an indication of how weak global economic growth is."
"effective demand is extraordinarily weak - tantamount to the late stages of the great depression."
"Monetary policy is not responsible for economic weakness - it's a fiscal issue."
The Fed is responsible for the inflation of the stock market
"Almost all the problems are due to a lack of long-term capital investment" - reflecting perfectly on our detailed explanations of company's preference for shareholder enhancement through buybacks rather than investing in the corporate growth of the economy... "nobody wants to invest in the long-term because nobody knows what is going to happen."
Greenspan...
And finally:
"Stock market is great - the economy is not."
You are right Alan...
* * *
We suspect this will be the last time Greenspan is invited on The Truth Channel.
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He is trying to reclaim his soul. I would not forgive him. God might.
Forget Green Lips .... this is important.....
DC's Catwoman Comes Out as BisexualTYLER:
Searching Member Comments is "Forbidden"
What's up??
That's mighty nice of him to tell us the system he screwed-up, is,... uh,... well,... screwed-up.
I'm sure he'll be forgiven for his participation ........redemption should be no problem
It's like a serial rapist telling us that rape is a big problem
that ought to be worth another 200-300 on the spx
FUCK YOU GREENSPAN !
Greensapn's been reading to much Zero Hedge.
And, of course I never tire of pointing out how ALL of these douchebags turn into tough guys after they're no longer in a position to do anything about it.
And what followed "The Late Stages Of The Great Depression" ?
Oh right... WWII
Barry can congratulate himself on moar job creation ... H-1B job creation:
Southern California Edison (SCE) IT workers replaced by H-1B contractors have become the latest Exhibit A in Congress for reformers of the visa program.
Sen. Chuck Grassley (R-Iowa), who has long advocated for changes to the H-1B program to protect U.S. workers, said the Edison layoffs illustrate how some employers "are potentially using legal avenues to import foreign workers, lay-off qualified Americans, and then export jobs overseas.
http://www.computerworld.com/article/2889276/so-cal-edisons-it-layoffs-a...
The printing press is churning out stock certificates.
Congress created $58 trillion of total US credit market debt and blew bubbles for decades with loose monetary policy.
That $58 trillion of debt is crushing the economy.
Remember - that's Congress and not the Fed that did this.
http://research.stlouisfed.org/fred2/series/TCMDO/
/sarc
The New Sentients© will hold both equally accountable.
And the men who spurred us on, sit in judgment of all wrong
They decide and the shotgun sings the song
I can't believe he used d word isn't that off limits in mainstream
If TPTB thought that anyone listened to Greenspan he'd have a nailgun accident.
“The stock market is great”
Yeah, right.
So, now he tells us the truth...
Long after what he built is ready to crash & burn.
Fuck you, GreenSpam!
http://news.yahoo.com/u-refinery-strike-continues-no-steps-toward-settle...
Robust!
well, greenspan was the builder, why shouldnt he be the crasher and burner.
BTW, what IS with the Error 403: Forbidden comments search function?
Tyler you keep taking the piss out of the germans with your Nein!Nein!Nein! references, and then you do a VERBOTEN!!! on us?
It depends...When real interest rates start to move up, that's when the crisis could hit."
Note: Real Interest rates !!!
I know this slimeball and he just dropped a hint that does not involve a fat ugly bitch with a pudding bowl haircut.
This slimeball lies all the time but dropped this fart for us to smell.
GreenSpam lost me at "Stock market is great...."
By who's metric, exactly?
Well...now we know what's really on all those container ships sitting off the SoCal coastline. H1-B workers.
Did that "labor" dispute ever end?
Watch the video it's just about economics. But Greenspan gets it finally.
The one thing we all forget is the simple truth for any country; ( even usa )
Economic growth is just productivity growth, and for that we need increasing long term capital investment programs.
And what followed "The Late Stages Of The Great Depression" ?
Oh right... WWII
Ding, ding, ding...we have a WINNER!!
I question his usage of "late stages", feels more like the "early stages" of the 2nd Great Depression...
Uhh, maybe because if he said anything while in power he'd be conveniently found in his bedroom with a self-inflicted gunshot.
Whatever, trying to save his wretched old ass. My God, to be that old and afraid to die is terribly sad. Just eat some cyanide Leonard Lake. You pussy. Don't try to get away when the shit goes down. You'll be caught and your fate will be much worse than the old cyanide capsule.
This slimeballs FEAR is that he dies BEFORE it falls apart. It's not a fear of dying, it's a fear of missing seeing this idiotic theory destruct as planned.
He is no fool, just short of living time.
Late Stages? 32 0r 37?
You idiots really let your irrational anger cloud your judgement with that Net neutrality story. If there was any doubt in my mind that this is a right wing rag it has been removed. Partisan hacks. Used to think this site was above that. Stupid idiots.
I will take that as one vote for 32...
Love the name and the blaze... Batt 77 peterpuffers have arrived on this thread, it almost screams apple pie, Indiana, yet far left commentary... Yes the Government will save the internet, you prop spreading ass, they always come for you first as soon as your no longer useful, love to meet ya..
Excuse me, but most who visit this site are not idiots. Frustrated? Yes. Big time. Net Neutrality? Most here could give a shit. Right wing? Hardly, most of us are probably only interested in "stop telling us what to do" or "what is best for us". Get it straight and then we will talk.
D.C. "68 square miles surrounded by reality."
As oppose to being an irrational ideologue who believes that a left or a right even exist?
Sorry, Mr. Greenspan this is Zero Hedge, not Zero Credibility.
"It depends...When real interest rates start to move up, that's when the crisis could hit."
Note: Real Interest rates !!!
I know this slimeball and he just dropped a hint that does not involve a fat ugly bitch with a pudding bowl haircut.
This slimeball lies all the time orbut dropped this fart for us to smell.
Janet Yellen, could be the Pilsbury Dough Boy's Bitch.
Exactly--FU Greenboy. Just because he's trying to be right on the second try, he fucked us all in the ass the first time when he was the big FedRes dick--and you didn't even have to be bent over the first time to get the shaft. So the second time is definately not the charm. He's just saying the right thing now cause he's not in the big chair anymore and nobody would listen to him otherwise.
6 consecutive rate increases and pop went the market thanks green bitch.
Not sure anything he says is "right". He has been so wrong on so many things i have great difficulty taking him as an expert in anything. But who is when predicting the future? I read this site to get your thinking as much as I do his. Real world stuff means way more to me than economic theories. But hard to hate anyone that changes his tune based on what he now thinks was a previous mistake. If thats what he's doing. And admitting he was wrong.
True, but I think he is right this time. When I look aournd how much our society has degenrtated, stagnant wages, the 'real growth' of crappy strip malls, the Walmart crowds on Black Friday, etc.
Depression may be the least of our worries.
Yeah, where has Clinton been BTW?
these clintons? https://www.youtube.com/watch?v=C8B43JOshC4
If you mean King William, The Priapic, he has been interviewing interns for Killery's coming administration. On the other hand, if you mean future Queen Killery, she has been dodging snipers.
Which Cunt?
witch.
At least him and volker are no longer in denial about it, golden parachutes and all.
Part of the new net neuter-reality laws....
Having the same problem
noticed that too. searching memeber comments is forbidden - big problem on this site now Tyler.
Do the Bagel Ferengi have souls?
Sorry ass wipe the ticket to Hell you purchased is non exchangeable.
All bankers go to Heaven.
They bought the tickets to Hell for us.
Greenspan's come clean twice in a week...could be that Mr Scratch has come calling for his soul he sold.
Too late fucker, burn baby burn!
.
Yes, the gold statement. Now, his second warning. Sounds to me like he's setting up the muppets, again. Gold will probably fall to $1000/oz. while the S&P soars for 6-8 months.
It's more like he sold his soul
hopefully it will be claimed soon
Did he mean the late stage of the beginning of the great depression, or did he mean that we've already gone through a repeat of the great depression and it's gonna be roses and buttercups from here. Either way, not much this man says can be trusted, much less figured out.
Indeed. The Challengers solid rocket boosters turned out to be not the first stage, but the last.
Perhaps that is the scenario the "Maestro" is hinting at when he speaks of this "late stage."
he needs to come clean on how it's all a fraud... the massiviest fraud eva...
This should be filed under: "Former Fed chairmen say the darndest things".
I'm sure in 20 years Yellen will be telling us we should've invested in gold when she was around.
he has been sent to send out a message that the markets will allwAys be ok and his bullshit earlier about gold is so we buy it and they force the price down. this man has no soul period. why is there nothing on ZH abaut the new Obamnet laws passed today by the FCC the news here gonna start looking very censored so the last days of Greenspan truth lol
Should the reality/ world be Newtonian, consequences will follow and repenting on a deathbed cannot possibly modify an outcome to a larger extend. A divine intervention from God All Merciful for your behalf is a similar delusion, because his existence is hearsay. If I were God, I would judge the case on its own merits.
my buddy's mom makes $84 /hour on the computer . She has been laid off for 5 months but last month her pay check was $19076 just working on the computer for a few hours. browse around this website... www.globe-report.com
Perhaps on topic, in a way, I think:
Pig at kneeling temple doesnt save oinker from hungry farmer.
Story about pig that comes to buddist temple and proceeds to kneel, the monks say some prayers, then is led off to be slaughtered.
There's a message there somewhere.
In Russian with a pics:
http://fishki.net/1444388-molitva-u-podnozhija-hrama-ne-spasla-hrjushku-...
He has no Soul;, just a Douche Bag Wife.
And the whole Ponzi is in plain sight...Please take a look at the silly idea we have "markets" any longer.
http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-6-debt.html
Since July of '11 (debt ceiling debacle) China has sold off $71 billon in US treasury debt while Belgium, Luxembourg, Ireland, and Cayman Islands have purchased $697 billion to the Federal Reserves $800 billion in Treasury purchases over the same period.
If you add in China's likely sales in it's typical secondary treasury buying locations of HK and UK and perhaps Canada...China has dumped maybe $300 billion while running record trade surplus with the US...and Treasury's yields collapse on the largest buyers walking away...riggggggght.
Counterfeiting. Alan's Green with envy!
http://blogs-images.forbes.com/jessecolombo/files/2014/07/fedbalanceshee...
Maybe keeping rates too low for too long had something to do with that you festering POS?
How was Greenspan worse than Bernanke?
Hmm, a simple question gets down votes 5 to 1 , and no comments ...
That means the down voters are acting out of political correctness (or some other kind of conformism).
I didn't down vote or up vote you, but I will take a stab at answering you. I think Greenspan was exalted as the great wizard of the economy by mainstream press and pundits (because they couldn't decipher what the hell he ever said), and despite what he started with keeping rates too low, and the verdict still out on Greenspan (at least in the mainstream), Bernancke thought his best move was to continue the maestro's policies and not rock the boat.
Rates were about 5% around the end of Greenspan's term.
Rates were a lot lower for a lot longer under Bernanke.
I recall reading one of William J. O'Neill's books on investing, and he clearly writes about Greenspan's tenure. Something about managing to tank the market three times during his tenure. I'll have to get the book out and find the paragraph.
Fuck Greenspan and his liberal wife.
She is a communist dude.. I know just another name but that is what they are...It is time we begin calling them what they are
".It is time we begin calling them what they are"
I think their both Douchebags!
was I close???I could call them commie douchebag...That does roll off the tongue better!
Call them as you see them.. Cheers !
Yes, they both play tennis and everything.....
Of course if he was to chase his tennis ball into the street and get hit by a bus, well, I hope the bus wasn't hurt.
Satan already has his hand ready ready to yank Greenspan at any moment.
All the Fed heads souls are claimed as well.
CNBC won't be inviting him back anytime soon. He's ruining their party.
I wish Greenie would of just said "I'd like to see my productivity grow in your mouth"
This is the first time I could understand him.....makes sense to me now! LOL
Christ I wish he would die already.
He is dead,,,the fucking undead....I mean look at him!
Death is chasing Greenspam one banana peel at a time, so he's trying to atone before he slips on one and cracks his exoskeleton.
"effective demand is extraordinarily weak - tantamount to the late stages of the great depression." WTF?
Is he suggesting we're close to the bottom, or that the bottom is about to fall out?
I seem to recall something happened in the late stages of the great depression that ended it. Maybe he's suggesting that.
No... he is suggesting the next phase that logically follows.
w a r
He is basicaly saying he knew exactly what he was doing. Thats the job. get it?
"Is he suggesting we're close to the bottom, or that the bottom is about to fall out?"
The latter.
I'm thinking the bottom is getting closer to us
Even as we continue to try and climb up
No no, dig UP, UP.
"Economy acting like the last stages of the depression"... sort of hints that we are coming out of one. What that says to me is Greenspan is predicting that things are getting better. I hope he is right but the economy just feels like its about to plunge to me. We'll see
He's the High Priest of Hopium (Financial Fraud). Green Shoots BS is his regular routine. Just Google it (Greenspan and green shoots). You'll find he does this regularly. He's the band that played while the Titanic sank.
Hurry up and die Mother F&^ker because I can't wait to come piss and on your grave.
Greenspan is traitor to himself, to his country, and to future generations of Americans drowned in debt.
and you are a moron
If it wasnt him it would have been someone else. It is the ideals and principles (take from one to give to another) of the people of the US that caused this mess. He just kept the ship afloat longer than most would have. Look at what happened and the changes after ge left. Too big to fail, QE etc. This all would have happened in the 80s if not for Greenspan.
He told congress as much everytime he testified. Its not going to work but this is what you want so here it is.
Americans have nothing to do with the Empire of Chaos - Rubin / Greeenspan / Summers et al do what they do as ordered - if there were no citizens they would like it better which is the objective in Greece and Ukraine
americans are imbeciles they are unworthy of the Bill of Rights
riphowardkatz - actually, despite my other posts, i do agree with you. he knew what was going to happen, but choose to 'do his job'. on the other hand, i've been on wall street a number of years, have never been nearly as succesful as i might have been, but there a few times that i told people flat out 'i am not doing that. you want to do that, fine with me, but i am not'.
he could have done that. he would not have been dead or poor, he would only have been checked out.
While unpopular to the 99% here in ZH, Greenspan is not an idiot or evil. He seems to have diverged a bit from his early writing but he is practicing monetary policy in accordance with the common beliefs of most central bankers in the world. They are all into some form of Keynesian monetary policy and also economic control. He is capable of rational economic analyses many of which, like this one we would agree with. Now, Krugman is an over the top apologist and I believe incapable of honest analysis, but that is not Greenspan or Bernanke or Volcker before him. Not sure about Yellen but she is practicing the monetary policy religion in line with all others of this era.
It was Obama who grabbed the last half of healthcare, not Greenspan. It was the FTC that just grabbed the internet in the name of "fairness". It is the leftist governments of the world that control wages on both ends. It is the SEC that sets trading rules, not the Fed. Government, more than the Fed or any of it's chairs is where to paint the bull's eye.
I disagree with Greenspan, central bankers, central planners, and essentially all government control of free markets, but I do not think Greenspan has a tail and pitchfork and frankly it does no good to deal with it that way. It may make you feel better to vent but I believe you are looking at the wrong person.
The Fed is a bartender and the government is a hopeless drunk with a gun and a credit card tied to your wallet.
Fine, we were just vening. But Volcker had the stones to do things that were unpopular with politicians. You shouldn't drop him into the same bucket with Greenspan, Bernanke and Yellen.
I am not making them all the same in terms of ranking them but just saying they all had the same duties. I single out Krugman, not because he was a Fed chair but because I think he is genuinely dishonest, insane or maybe both.
Greenspan is a tool of the status quo in a system that is unjust and evil, contrary to what you say. He is completely sane and knowingly did what he did to maintain the unjust status quo. You need to keep looking, FreedomGuy, cause you aint found it yet. I fully understand your, "turn the other cheek" denial, but these sociopaths are not going to repent of their sins against humanity because they suddenly "see the light". Sometimes, only a terrific 'shock' will awaken people from a deep slumber. Here I speak of the 'ignorant'. Unfortunately, those seeking to maintain the corrupt status quo are fully aware of their unrighteous doings. They will not stop what they are doing by asking them nicely. What they do/will understand is the blunt end of a heavy anvil....
Americans are IGNORANT (by choice) and blindy believe their 'leaders'. While they are ultimately to blame, Greenspan must take full responsibility since he accepted (and relished in) this position of power.
And what would 'his country' be? I ask innocently.
What does ZH mean when I get "403 Forbidden" when I try to read my old posts?
It's a server response: http://en.wikipedia.org/wiki/HTTP_403
Meaning that the server is set up not to allow you access, for whatever reason.
Could it be because of my posts here on ZH ?
No, it's how ZH has their website set up. You may be trying to access a feature they have closed off.
Server has been screwing up since yesterday morning.
I'm sure they are aware of it. Good luck finding your posts;)
On and off for months now.
Thats maintainence mode screenshot is beginning to piss me off.
Looks like the Death Star over his left shoulder is nearly operational
He has become an outsider at the fed. Its like when any hack is gone from a gov job for a long time. He has nothing to lose now for telling the truth. Imagine your wife reading in the financial news say afer day that you are a "liar and bafoon." He decided to come out. Why do you think you have not heard a word from bernanke? He wants to be as far away from this whole mess when it explodes. WHat these people have done qualifies them to be the future guests of Lucifer.
<Hot tub time machine flashback>
Ben Bernanke - TIME Person of the Year 2009.
http://content.time.com/time/person-of-the-year/2009/
"No (interest) rate normalization in my lifetime". 2014.
http://www.zerohedge.com/news/2014-05-17/bernanke-shocker-no-rate-normal...
"It's a big club and you ain't in it." George Carlin - 2005.
https://www.youtube.com/watch?v=i5dBZDSSky0
I dont always agree with the guy, but you have to give him credit. He understands the issues. Always like listening to his insight.
Thanks Greeny. You senile prune. Member when you shit on everyone. Fuck head.
dear ricky roma, he remembers very well the 2 or 3x he took advantage of everyone else (i prefer not to be vulgar, as a gentlemen, when possible). remembers it fondly. he did very well with it, as did his friends. until there is some accountability for that, he will continue. and he is.
https://www.youtube.com/watch?v=GbcfyLfPdlc
As if stock buybacks have nothing to do with high p/e's.
Thanks Alan!
Let me guess...the Fed itself green lights this behavior, yes, yes?
But the guy last week who claimed the markets were 100% central bank-juiced was shouted off the stage?
Even a blind squirrel finds a nut now and then.
The stock market is fine as long as QE is pumping dollars into the thing.
Don't be too sure of that.
QE was there to put TBTF in a position,this time, to buy up everything for pennies on the
dollars.That war chest is now $2T.
The algos will be just turned off, and with no shorts left, the only thing that will stop the
descent will be the ground.
Few understand what you posted. It is completely correct. TBTJ PD/MM abused QE flow, knowledge if positions and control of the effective money supply to turn everyone upside down while collecting IOER rather than investing in the real economy and generating inflation. Now, they are taking all real assets down hard to use their essential fraudulent phantom FRB claims to acquire real assets and real options on the cheap. We can stop them. Simply liquidate all long duration financial assets and split the proceeds between cash and gold. There are orders of magnitude more financial assets, do the gold squeeze will expose the bullion banks and the financial asset ponzi.
I will add, get debt free now if you can, and yes 1/2 cash,half PM's.
Better strategy is to max debt everywhere to take physical cash out of the system :-)... Use a portion to buy physical gold. Use their fraud against them.
When they can, and do, change the rules midsream, taking on debt for that is
very dangerous.
extremely dangerous, in a setup that includes private prisons and is not far away from debtor's prisons of old
They can/will buy corporations on the cheap. Lots of folks work for corp's. Welcome to the kosher plantation, slaves. The Massa's been expectin' ya.
https://www.youtube.com/watch?v=SfTfsWhZi5E
This is a new You Tube Channel from creator of the film Bailout. I 'hope' (better chances here than in DC), that the Tylers would be willing to allow this distinguished gentleman to become a regular contributor.
Maybe Miss Evans, as she has a very significant spread.
lumberjack, great video, what well all know here on zh but I have sent it to others maybe they will wake up,
although we are well on our way to dictatorship, today was a big day for that.
comments are now off limits ...for our protection?, tylers need to speak up on this.
oh and fuck you jew boy greenspan..sorry ass should swing.
Watch the spin. since when is low inflation disappointing?
What happened to the evil twin Greenspan ?
Nah, we don't get fooled again the pitchforks are getting a good sharpening
Red herring misdirection's liar.
Its the beginning of the depression we've been in for years.
Is it a coincedence it also feels like the start of WW3? You can practically cut through the tensions in the air with a fucking chainsaw.
Looks like the early stages of the greater depression, to me...
What is the overall strategy? Why is Greenspan opening his mouth so much and talking anti-Fed? Is he interested in Peter Schiff's job/his own legacy ("the Maestro extraordinare" who saw the coming collapse), or is this coordinated with the Fed? To what end?
these Fed Bankers want media attention and money. Fancy that!
Now that bernanke and yellen have replaced him, greenspan has to say whatever doomsaying stuff he can to get media attention, which will lead to more money for speaking fees.
All a part of Tribal planning.
This is as good as I've found. It's short.
http://redefininggod.com/nwo-schedule-of-implementation/
Hell, he should know, he was there, right?
Who cares about the real economy when the stock market is doing so great?
“Late stages”, Bitchez!!!
It’s almost over. Cling on.
Phasers to stun.
Beyond the usual snarky comments, one thing I noticed is that he kept saying "real" interest rates, as in, subtracting out inflation. So, if, in reality, inflation is -0.25 (actually, deflation, as evidenced by today's CPI), and the Fed raises interest rates 0.25, isn't the net effect a big fat ZERO?
I think that's the bogey in the room that has Yellen up at night (beyond Bernanke sneaking into her bedroom for a peek at her rather large "thang"). The Fed is so far behind the curve, having kept interest rates so low for so long, that they've entered the deflationary twilight zone.
Problem is, if deflation persists, which it should in a weak economy, and goes to numbers like during the GD, like -10%, what are they going to do, price the fed funds rate at 10%, 12%, just to offset it. That would only spook markets further, pricing out not just consumers, but most businesses. Of course, it won't happen, because who wouldn't like to collect 10% on bonds when inflation is -10%. Like making 20% on your money... hmmm, Janet may get a boner over that thought. Enrich the rich just a little bit more while completely killing the middle class. YAHTZEE and JENGA all at once!
What the Fed and central bankers are seeing is that they cannot stimulate actual demand or economic activity with zero interest rates. If you are unemployed you cannot take out a loan at any interest rate. If you have a flat income and uncertain future you may not be able to take out additional loans or even want to.
Keynesian monetary and economic policy stresses only the consumption side of the economic models. Austrian models show that savings actually correlate better with prosperity and create a useful reserve in any downturns in an economy.
So, the Fed is up against economic mortality but governments everywhere are whipping the central bankers for some economic alchemy to change moribund leftist economies into golden free market economies. I think we are seeing the monetary end game and limits of these beliefs.
Greenspan: Did I do this???!!!!
Oh yeah!... I sure as hell did!!!!