Greenspan: "The Stock Market Is Great", But The Economy Feels Like In "The Late Stages Of The Great Depression"

Tyler Durden's picture




 

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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Thu, 02/26/2015 - 18:54 | 5833220 wendigo
wendigo's picture

He is trying to reclaim his soul. I would not forgive him. God might.

Thu, 02/26/2015 - 18:55 | 5833227 macholatte
macholatte's picture

 

 

 

Forget Green Lips ....  this is important.....

DC's Catwoman Comes Out as Bisexual

 

Thu, 02/26/2015 - 18:57 | 5833240 macholatte
macholatte's picture

 

 

TYLER:

 

Searching Member Comments is "Forbidden"

 

What's up??

Thu, 02/26/2015 - 19:01 | 5833254 Pool Shark
Pool Shark's picture

 

 

That's mighty nice of him to tell us the system he screwed-up, is,... uh,... well,...  screwed-up.

 

Thu, 02/26/2015 - 19:03 | 5833262 kliguy38
kliguy38's picture

I'm sure he'll be forgiven for his participation ........redemption should be no problem

Thu, 02/26/2015 - 19:07 | 5833271 XqWretch
XqWretch's picture

It's like a serial rapist telling us that rape is a big problem

Thu, 02/26/2015 - 19:08 | 5833275 rccalhoun
rccalhoun's picture

that ought to be worth another 200-300 on the spx

Thu, 02/26/2015 - 19:13 | 5833291 Four chan
Four chan's picture

FUCK YOU GREENSPAN !

Thu, 02/26/2015 - 19:19 | 5833306 NoDebt
NoDebt's picture

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.

Thu, 02/26/2015 - 19:30 | 5833335 ZerOhead
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And what followed "The Late Stages Of The Great Depression" ?

Oh right... WWII

Thu, 02/26/2015 - 19:49 | 5833401 847328_3527
847328_3527's picture

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...

Thu, 02/26/2015 - 20:31 | 5833544 Macchendra
Macchendra's picture

The printing press is churning out stock certificates.

Thu, 02/26/2015 - 20:59 | 5833583 Pinto Currency
Pinto Currency's picture

 

 

 

 

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

 

Thu, 02/26/2015 - 21:14 | 5833688 Bendromeda Strain
Bendromeda Strain's picture

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

 

Thu, 02/26/2015 - 21:56 | 5833855 I MISS KUDLOW
I MISS KUDLOW's picture

I can't believe he used d word isn't that off limits in mainstream

Thu, 02/26/2015 - 22:07 | 5833888 Stuck on Zero
Stuck on Zero's picture

If TPTB thought that anyone listened to Greenspan he'd have a nailgun accident.

 

Thu, 02/26/2015 - 22:34 | 5833971 Manthong
Manthong's picture

“The stock market is great”

Yeah, right.

Thu, 02/26/2015 - 22:47 | 5834004 wee-weed up
wee-weed up's picture

 

 

So, now he tells us the truth...

Long after what he built is ready to crash & burn.

Fuck you, GreenSpam!

Thu, 02/26/2015 - 23:59 | 5834218 Son of Loki
Son of Loki's picture
U.S. refinery strike continues with no steps toward settlement

 

http://news.yahoo.com/u-refinery-strike-continues-no-steps-toward-settle...

 

Robust!

Fri, 02/27/2015 - 07:01 | 5834702 Squid-puppets a...
Squid-puppets a-go-go's picture

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?

Fri, 02/27/2015 - 00:26 | 5834301 Mentaliusanything
Mentaliusanything's picture

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.

Fri, 02/27/2015 - 09:07 | 5834847 bonderøven-farm ass
bonderøven-farm ass's picture

GreenSpam lost me at "Stock market is great...."

By who's metric, exactly? 

Fri, 02/27/2015 - 02:43 | 5834537 A Nanny Moose
A Nanny Moose's picture

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?

Sun, 03/01/2015 - 14:58 | 5843131 Max Steel
Max Steel's picture

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.

Fri, 02/27/2015 - 00:23 | 5834295 Kassandra
Kassandra's picture

And what followed "The Late Stages Of The Great Depression" ?

Oh right... WWII

Ding, ding, ding...we have a WINNER!!

Fri, 02/27/2015 - 02:30 | 5834525 cheech_wizard
cheech_wizard's picture

I question his usage of "late stages", feels more like the "early stages" of the 2nd Great Depression...

 

Thu, 02/26/2015 - 20:30 | 5833538 zilztrain
zilztrain's picture

Uhh, maybe because if he said anything while in power he'd be conveniently found in his bedroom with a self-inflicted gunshot.

Thu, 02/26/2015 - 23:24 | 5834108 drdolittle
drdolittle's picture

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.

Fri, 02/27/2015 - 00:36 | 5834328 Mentaliusanything
Mentaliusanything's picture

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.

Thu, 02/26/2015 - 20:42 | 5833575 RaceToTheBottom
RaceToTheBottom's picture

Late Stages?  32 0r 37?

Thu, 02/26/2015 - 21:00 | 5833638 americanreality
americanreality's picture

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.

Thu, 02/26/2015 - 21:14 | 5833703 RaceToTheBottom
RaceToTheBottom's picture

I will take that as one vote for 32...

Thu, 02/26/2015 - 23:14 | 5834092 Calmyourself
Calmyourself's picture

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..

Fri, 02/27/2015 - 00:11 | 5834257 BeanusCountus
BeanusCountus's picture

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.

Fri, 02/27/2015 - 02:32 | 5834528 cheech_wizard
cheech_wizard's picture

D.C. "68 square miles surrounded by reality."

Fri, 02/27/2015 - 02:47 | 5834541 A Nanny Moose
A Nanny Moose's picture

As oppose to being an irrational ideologue who believes that a left or a right even exist?

Thu, 02/26/2015 - 21:09 | 5833684 JuliaS
JuliaS's picture

Sorry, Mr. Greenspan this is Zero Hedge, not Zero Credibility.

Fri, 02/27/2015 - 00:24 | 5834296 Mentaliusanything
Mentaliusanything's picture

"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.

Fri, 02/27/2015 - 11:00 | 5835246 STP
STP's picture

Janet Yellen, could be the Pilsbury Dough Boy's Bitch.

Thu, 02/26/2015 - 19:22 | 5833312 gould's fisker
gould's fisker's picture

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.

Thu, 02/26/2015 - 20:36 | 5833559 Four chan
Four chan's picture

6 consecutive rate increases and pop went the market thanks green bitch.

Thu, 02/26/2015 - 23:46 | 5834173 BeanusCountus
BeanusCountus's picture

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.

Fri, 02/27/2015 - 07:02 | 5834703 Son of Loki
Son of Loki's picture

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.

Thu, 02/26/2015 - 19:16 | 5833299 HonkyShogun
HonkyShogun's picture

Yeah, where has Clinton been BTW?

Thu, 02/26/2015 - 20:46 | 5833587 Four chan
Thu, 02/26/2015 - 20:47 | 5833594 Caleb Abell
Caleb Abell's picture

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.

Thu, 02/26/2015 - 22:11 | 5833899 Ghostdog
Ghostdog's picture

Which Cunt?

Thu, 02/26/2015 - 23:29 | 5834126 Four chan
Four chan's picture

witch.

Thu, 02/26/2015 - 19:02 | 5833258 TeamDepends
TeamDepends's picture

Part of the new net neuter-reality laws....

Thu, 02/26/2015 - 19:04 | 5833266 XqWretch
XqWretch's picture

Having the same problem

Do NOT follow this link or you will be banned from the site!