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."


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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wendigo's picture

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

macholatte's picture




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

DC's Catwoman Comes Out as Bisexual


macholatte's picture





Searching Member Comments is "Forbidden"


What's up??

Pool Shark's picture



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


kliguy38's picture

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

XqWretch's picture

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

rccalhoun's picture

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

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.

ZerOhead's picture

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

Oh right... WWII

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.

Macchendra's picture

The printing press is churning out stock certificates.

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.




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


I MISS KUDLOW's picture

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

Stuck on Zero's picture

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


Manthong's picture

“The stock market is great”

Yeah, right.

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!

Son of Loki's picture
U.S. refinery strike continues with no steps toward settlement



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?

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.

bonderøven-farm ass's picture

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

By who's metric, exactly? 

A Nanny Moose's picture we know what's really on all those container ships sitting off the SoCal coastline. H1-B workers.

Did that "labor" dispute ever end?

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.

Kassandra's picture

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

Oh right... WWII

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

cheech_wizard's picture

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


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.

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.

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.

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.

RaceToTheBottom's picture

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

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..

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.

cheech_wizard's picture

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

A Nanny Moose's picture

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

JuliaS's picture

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

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.

STP's picture

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

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.

Four chan's picture

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

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.

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.

HonkyShogun's picture

Yeah, where has Clinton been BTW?

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.

TeamDepends's picture

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