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Alan Greenspan Warns Stocks Are "Without Doubt Extremely Overvalued"

Tyler Durden's picture




 

While America 'believes' it is highly productive, former Fed Chair Alan Greenspan instantly dispels that myth in another ominous appearance on CNBC this morning, "American productivity has gone nowhere in the last few years," and that is what is holding back wage growth. Furthermore, reiterating his concerns about the inverse relationship between surging entitlements and weak savings rates, Greenspan noted, "the annual rate of increase in entitlements of 9% per year...and the people that receive it believe they are getting their money back and have a right to it." There simply is no long-term investment as businesses favor short-term actions as the Maestro explains Fed QE lowering the real rate of interest "has been responsible for the rise in P/E multiples... and when rates normalize, that will reverse," adding that "we can't argue that we are extremely overvalued in the marketplace."

 

Greenspan explains... Productivity... Savings... Entitlements... Euro Failure... QE...Fed bubble-blowing... stock overvaluation and 1929 looms...

 

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Fri, 03/06/2015 - 09:22 | 5860762 Shocker
Shocker's picture

Well there is no economy

Fri, 03/06/2015 - 09:23 | 5860766 Haus-Targaryen
Haus-Targaryen's picture

Its why I left.  

Fri, 03/06/2015 - 09:24 | 5860773 Shocker
Shocker's picture

Stocks can only go up for so long with this no growth economy

Layoff List: http://www.dailyjobcuts.com

-

Fri, 03/06/2015 - 09:26 | 5860781 Looney
Looney's picture

Will this Pterodactyl ever die and shut up? ;-)

Looney

Fri, 03/06/2015 - 09:27 | 5860787 BLOTTO
BLOTTO's picture

Ironically, its this cunts bday today...

Fri, 03/06/2015 - 09:33 | 5860800 SoilMyselfRotten
SoilMyselfRotten's picture

And someone just beat gold with an ugly stick

Fri, 03/06/2015 - 09:39 | 5860823 HelluvaEngineer
HelluvaEngineer's picture

I'm sick and tired of this old fuck going in front of the media and trying to get right with God before he croaks.  Oh, you've always been a student of Ayn Rand and loved gold?  Bullshit.

Fri, 03/06/2015 - 09:40 | 5860833 flacon
flacon's picture

"adding that "we can't argue that we are extremely overvalued in the marketplace.""

So what he's saying is that we AREN'T overvalued? Typical Greenspanish.  

Fri, 03/06/2015 - 09:57 | 5860899 Self-enslavement
Self-enslavement's picture

Lies, smoke and mirrors. That's how it's done. They want you to believe that money is created out of thin air. Do you believe that?

Printing new currency steals from existing currency by devaluation.

Hint: they tell lies.

Fri, 03/06/2015 - 10:02 | 5860947 kaiserhoff
kaiserhoff's picture

and who is most guilty of these crimes,

  GREENSPAN?

Fri, 03/06/2015 - 11:15 | 5861259 BuddyEffed
BuddyEffed's picture

The market is guaranteed to rally on these observations from Greenspan.  Not only do they create money out of thin air to dump into the market and stocks, they tweak the news feeds to get the gullible to short the market so that when the stocks pop on the new money, the short coverings also generate paper profits too.

Fri, 03/06/2015 - 12:13 | 5861493 Pinto Currency
Pinto Currency's picture

 

 

Greenspan, Rubin, Rothschilds are all starting to chirp - trying to help out.

Must be close.

Fri, 03/06/2015 - 10:03 | 5860949 Hyjinx
Hyjinx's picture

Turn-of-phrase: "we can't argue (with the fact) that we are extremely overvalued in the marketplace."  He's pretty damn old so I'll give it a pass.

Fri, 03/06/2015 - 10:49 | 5861156 The Third Man
The Third Man's picture

Alan Greenspan...just another Robert McNamara.

Fri, 03/06/2015 - 10:23 | 5861052 Blano
Blano's picture

Yes, with the possible exception of a couple sectors of the stawk market.

Fri, 03/06/2015 - 09:43 | 5860848 NoDebt
NoDebt's picture

So the reason wages aren't rising is because productivity is flat, huh?  What about all those years when productivity was booming and wages were flat to declining?  Wages have been down 5-7% in real terms since 2008, but productivity took BIG leaps coming off the bottom of the "great recession".

What is the incentive to be more productive, exactly, when you don't get to share in it's benefits?  Fuck it.  I'm calling for a work stoppage.

Fri, 03/06/2015 - 09:59 | 5860919 BrosephStiglitz
BrosephStiglitz's picture

Real wages* have been in decline in the US since the 1970s, while productivity certainly has not declined, but yes, absolutely. Also, I have to say, while this fucker is screaming bloody murder about stock valuations, he is misdirecting away from the big warning which is sounding in the debt markets.

Misdirection.  I'm starting to think that Greenspan is the right hand that distracts people, while the left hand is in people's pockets.

*Of course this is an aggregated statistic, real wages have not declined for the top earners, just the unwashed masses. 

Fri, 03/06/2015 - 10:00 | 5860936 Self-enslavement
Self-enslavement's picture

Wages don't keep up with inflation because all of the newly created paper goes to the top. Everyone knows that. Why Zerohedge doesn't come right out and address that, your guess is as good as mine.

Fri, 03/06/2015 - 10:16 | 5860976 BrosephStiglitz
BrosephStiglitz's picture

Lots of reasons why real wages declined.  For a start the US (via corporate interests) effectively opened up the labor market to become global.  Your US citizen was competing against peasants in Cambodia, China, India, Indonesia, The Phillipines etc. who could produce for a fraction of the costs due to purchasing parity.

A lot of unions were broken up in the '80s.  Financial deregulation during Reagan/Thatcher, and Clinton (under this guy above who is still in the "fleece the morons for the powers that be" business).  Financial deregulation simply gives bankers, politicians etc. too much control of the monetary economy, and gives them a first mover advantage.  

Also, as you point out, inflation, which is again linked to the above.  Basically real income has increased for your upper economic strata, your asset ownership class.  For everyone else it has been stolen.

Funny thing.. I built an inflation simulator with an RNG for a game of Monopoly (because I am a geek like that.)  Me and 5 friends played the game.  The first game lasted ~30 rounds.  The second game lasted ~15.  In essence the inflation (which had an arithmetic mean of ~3.4%, not too far from the annual US inflation rate since the 1950s, around 3%) just sped up the process of people getting bankrupted and sped up the asset accumulation.

As an aside, I wanted to simulate a deflationary crash but.. the game ended before it could happen. 

Edit: Of course, in the real world you would have a 7th and an 8th player with controlling interests in the bank itself, profiting off of the increased money supply, but there you go. 

Fri, 03/06/2015 - 10:13 | 5861002 aardvarkk
aardvarkk's picture

Wake up.  ZH has addressed that issue MANY times over the years.

Fri, 03/06/2015 - 21:21 | 5863495 Chump
Chump's picture

And as recently as one week ago.

http://www.zerohedge.com/news/2015-02-26/despite-record-stocks-surging-w...

http://www.zerohedge.com/news/2015-02-25/market-red-herring-distracting-...

Market participants want to hear that Americans continue to do poorly enough in the eyes of the Fed so that the Fed will continue to fund their wealth appreciation.  Period.   Welcome to modern day America.  The land of debt, income disparity and easy money to those who don’t need it.  The entire system is completely out of whack.  But markets can have a negative correlation to the economy so long as the Fed is willing to print and inject money.  This is dependent on the USD of course, but currently there are no concerns of USD weakness.

Being new to ZH is no excuse.  The search button does indeed search.

Fri, 03/06/2015 - 10:07 | 5860978 JRobby
JRobby's picture

The time frame corresponds with governments growing larger and issuing more and more debt to support standards of living.

Fri, 03/06/2015 - 10:22 | 5861023 Colonel Walter ...
Colonel Walter E Kurtz's picture

No shit, No Debt.

Have been in commercial construction and from 2000-2008, I watched house prices going through the roof. Any loser became a home builder and was raking in the money, and I could not figure out what was going on. I assumed labor wages were rising  Every so often we would get asked by a home builder to price their work and I would eventually be told what the installation costs prices were, and they were lower than the prices in the early to mid 90's. I could not figure it out. Eventually understood....ninja loans and illegal labor has a way of messing up the natural supply and demand of the labor market. And when the housing market crashed, a lot of that labor came into the commercial market. The manufacturing off-shoring model has been imported to the construction labor market.

At least we still have bartending and waitstaff work to look forward too.

Forward comrades!    

Oh and by the way.... same crap going on now in the apartment building sector.

 

Fri, 03/06/2015 - 10:59 | 5861199 highly debtful
highly debtful's picture

NoDebt, you do realise sooner or later I have to tell your NSA about your comments here, don't you? But don't fret, I suggest you do the same and contact my "Veiligheid van de Staat" (our version of the NSA, but with a year budget of  probably no more than 10 millions euros). Maybe we'll meet up in Guantanamo. And guess what? I can imagine worse company in a prison cell than you. 

Sat, 03/07/2015 - 08:28 | 5864272 Bemused Observer
Bemused Observer's picture

How can wages rise because of productivity? Our whole system is geared to compensating labor by the hour. This is one of the reasons for the wage/productivity disconnect in the first place.

Technology allows one man to do the work of 10, but he still gets paid by the hour for one. Meanwhile, management pockets the wages and productivity of the other 9 who get pink slips...

How do you raise wages meaningfully under these conditions? When you try to do it through the minimum wage, you end up with 50 dollar an hour busboys.

Fri, 03/06/2015 - 09:53 | 5860898 clade7
clade7's picture

Somebody feed this old tortoise a head of lettuce so he has something to nibble on and shuts the hell up...

Fri, 03/06/2015 - 10:05 | 5860964 jcaz
jcaz's picture

Yep-  the old fuck pulled the trigger on this mess,  refuses to take any responsibility for it.  History will show that Greenspan's vanity about being a "rock star" elevated the Fed Chairman gig from a $70K/yr token bureaucrat slot to fucking Himmler-esque power-

Stop showing up on TV to collect your $400 CNBC fees and fucking die already,  you toad......

Fri, 03/06/2015 - 09:40 | 5860826 Buckaroo Banzai
Buckaroo Banzai's picture

I seem to remember that the last time Greenspan said stocks were overvalued, they proceeded to rise for four more years.

Fri, 03/06/2015 - 09:48 | 5860870 HelluvaEngineer
HelluvaEngineer's picture

Going on record - I think the party ends this fall.

Fri, 03/06/2015 - 16:44 | 5862564 Jstanley011
Jstanley011's picture

The trouble is, when you are right about the end of the world, when it happens nobody cares.

Fri, 03/06/2015 - 09:42 | 5860843 sodbuster
sodbuster's picture

Looks like Greensperm was beaten with an ugly stick- repeatedly!!!

Fri, 03/06/2015 - 09:59 | 5860928 JRobby
JRobby's picture

CB's were the "beaters"

Fri, 03/06/2015 - 09:32 | 5860798 smlbizman
smlbizman's picture

people believe its theirs...cause that is the bullshit they were told when they were stuffing up ur ass...its not rape its love.....oh wait it was rape...

Fri, 03/06/2015 - 10:00 | 5860933 Crash N. Burn
Crash N. Burn's picture

"Will this Pterodactyl ever die and shut up? ;-)"

Not just yet, the oligarchs need to have their whores warn the serfs about the crash they are about to cause. Falls under the CYA clause: Cover Your Ass - don't want to end up dancing from a lamppost.

Personally, I found it much more interesting when that old Rothschild whore let truth slip:

Allen Greenspan Admitting the FED is above the law congress and president

 

Fri, 03/06/2015 - 10:01 | 5860939 Crash N. Burn
Crash N. Burn's picture

dupe

Fri, 03/06/2015 - 09:26 | 5860783 GetZeeGold
GetZeeGold's picture

 

 

Greenspan...

 

Don't trust him.....he's a closet barbarian.....I know what he wrote in 66.

Fri, 03/06/2015 - 09:52 | 5860890 Headbanger
Headbanger's picture

Oh??

Fri, 03/06/2015 - 09:57 | 5860921 GetZeeGold
GetZeeGold's picture

 

 

 

Go around back.....I'll hook you up with transcript.

Fri, 03/06/2015 - 10:17 | 5861022 highly debtful
highly debtful's picture

Ironic, isn't it? He started his career with gold and at the end of his life cycle he's back at it, while inbetween... , well, we all know the story, don't we?

What I would like to know is how much physical the man's got stashed away? Betcha it won't be small potatoes. 

Fri, 03/06/2015 - 09:28 | 5860770 Hayabusa
Hayabusa's picture

I just hate it when guys like Greenspan "come out" of the "closet" they've kept themselves in for decades

doing all kinds of BS that benefit the rich/powerful while concurrently screwing the 99%.  Alan, it's too

late to "come clean" now... the damage is done and you are one of the most responsible for the state

of affairs as they stand and will go down through the history books as a sell-out bankster lapdog.

Fri, 03/06/2015 - 09:25 | 5860775 dufferin
dufferin's picture

it's all Fiction... Legal Fiction... Dead Legal Fiction... 

Fri, 03/06/2015 - 09:46 | 5860866 confederacy of ...
confederacy of the dunces's picture

Greenspan is simply a Gatekeeper. TPTB have him reading from their playbook. All in due time.

As jimmy Morrison said :The future is uncertain, and the end is always near..." -- Roadhouse Blues.

Fri, 03/06/2015 - 10:04 | 5860953 JRobby
JRobby's picture

"Squawk Box" Now there is a highly rated show everyone should tune in to...........

Keep trotting out oligarchs who contributed to this disaster. Greenspan being one of the most visible. He should be ashamed to show his face.

Fri, 03/06/2015 - 09:26 | 5860782 BeaverCream
BeaverCream's picture

Posted 20 mins ago?  You're right, WTF.

Fri, 03/06/2015 - 09:35 | 5860796 GetZeeGold
GetZeeGold's picture

 

 

Greenspan: Stocks not too hot, despite bubble talk


|

5 Mins Ago

 

See......this is why we have these team meetings.

Fri, 03/06/2015 - 10:00 | 5860932 Cthonic
Cthonic's picture
Greenspan: Stocks not too hot, despite bubble talk | 12 Mins Ago
Fri, 03/06/2015 - 09:41 | 5860839 HelluvaEngineer
HelluvaEngineer's picture

Telling everyone exactly what they want to hear. That's how these controllers work.

Fri, 03/06/2015 - 09:55 | 5860903 mrdenis
mrdenis's picture

Him speak with forked tongue ........

Fri, 03/06/2015 - 14:28 | 5862074 Raging Debate
Raging Debate's picture

Headbanger - Good catch on that link. If Greenspan was starting to come clean this shows he changed his mind. Someone probably whispered in his ear.

I like to think no one is beyond redemption but obviously Greenspan isn't serious in watching today's interview.

As for CB language it can be translated once you understand it is based on socratic logic.

Fri, 03/06/2015 - 16:46 | 5862592 Jstanley011
Jstanley011's picture

He got plenty of experience talking out of both sides of his mouth during his tenure as chair, by now it's the only he's good at.

Fri, 03/06/2015 - 09:23 | 5860767 Muddy1
Muddy1's picture

Why is  Greenspan getting an audience and implied credibility all of a sudden?  s it because he is saying what we want to hear and tickeling our ears with tantilizing information?  He is still Greenspan.

Fri, 03/06/2015 - 09:23 | 5860768 dimwitted economist
dimwitted economist's picture

NOOOO!!!! he's a LIAR!!!!!

Fri, 03/06/2015 - 09:24 | 5860771 BeaverCream
BeaverCream's picture

Fiddler on the roof?

Fri, 03/06/2015 - 09:25 | 5860776 Cognitive Dissonance
Cognitive Dissonance's picture

So when Greenspin is beholden to his customers he speaks truth, but when beholden to the banks he does not?

Hypocrisy!

Fri, 03/06/2015 - 10:02 | 5860945 Bearwagon
Bearwagon's picture

Do I really have to remember you of all people that the best lie ever is still the clever dosed truth?!

Fri, 03/06/2015 - 09:25 | 5860777 AccreditedEYE
AccreditedEYE's picture

CAN'T argue we are extremely overvalued? Um, come on guys.. Look at CNBS own headline... Greenspan stocks not too hot, despite bubble talk. I'm on the team but let's not resort to MSM fact twisting.

Fri, 03/06/2015 - 10:19 | 5861033 Blano
Blano's picture

That's how I heard it.

Greenie mentions a couple sectors that may be bubbling, but he's saying you can't argue that the stock market in general is overvalued.

Fri, 03/06/2015 - 09:25 | 5860778 Fukushima Fricassee
Fukushima Fricassee's picture

Repent,  for your time is at hand.

Fri, 03/06/2015 - 09:27 | 5860786 Catullus
Catullus's picture

I remember when I started my career in 2006, you had to assume 8% returns just get to retirement. And I still told people to save 20% of their income.

Between the government eating 55% of my income and needing to save 20% a year, there's just no way.

And then a market that just now got back to breakeven nominally after 15 years.... If you started your career between 1990 and 1998, you're totally fucked. I'd start learning a language of a country with a lower purchasing power parity now.

 

Fri, 03/06/2015 - 09:43 | 5860845 Cognitive Dissonance
Cognitive Dissonance's picture

You are young.

My first mortgage was at 16% and savings accounts paid well over 6%. 30 year Treasuries were up around 12%.

Think about that for a moment. The economy was stable enough to handle those interest rates without crashing and burning. Imagine if the Fed brought rates up 2% today. Just imagine.

Fri, 03/06/2015 - 11:06 | 5861109 highly debtful
highly debtful's picture

CD, I still vividly remember how savings accounts at the Belgian ASLK bank (Algemene Spaar- en Lijfrentekas, later on Fortis, to finally end up in the French BNP Paribas Fortis due to some minor erm... shall we say, bumps on the road) could yield more than 8 % in 1990 if you froze up your savings for at least 5 years in the accounts . In the eighties here in Belgium yields of 10 % or more on saving accounts were not uncommon.

Just today, I received some bank statements from BNP Paribas Fortis. Interest on our general accounts? About 0,20 % + 0,10 % "getrouwheidspremie" (loyalty bonus).

My best investment right now? Having no debts whatsoever. At least that's my takeaway.

Fri, 03/06/2015 - 11:42 | 5861371 Monty Burns
Monty Burns's picture

Genuine question: How is having no debts a good strategy in present conditions?  Surely with interest rates near zero it makes no sense to save money and better to borrow and invest  in some tangible assets?

Fri, 03/06/2015 - 12:07 | 5861464 highly debtful
highly debtful's picture

Peace of mind. It's becoming a priceless asset these days.

Fri, 03/06/2015 - 12:39 | 5861611 Clowns on Acid
Clowns on Acid's picture

Stawks are "tangible" assets these days. Real estate is very pricey.... leaves PMs... but we have covered that before.

Fri, 03/06/2015 - 11:40 | 5861363 Monty Burns
Monty Burns's picture

"The economy was stable enough to handle those interest rates"

That's because such rates ensured care and diligence before borrowing. Hence better investment decisions.

Fri, 03/06/2015 - 12:38 | 5861603 Clowns on Acid
Clowns on Acid's picture

Cog Diss my man - I believe that you are talking very early 80s. Just remember that rates had to be jacked up because of rampant inflation under Carter. Also.. Nixon had removed the US officially from the gold standard in 1973.

It did'nt take the short fingered vulgarians long to abuse the "Trust" of the US citizenry after the abandonment of the gold standard. Of course that had been building anyway with the deficits from Johnson's Vietnam war and his hilariously named "Great Society" programs in the mid/late 60's.

Funny... it seems that is where all this fraud, deceit, and murder started.  

Fri, 03/06/2015 - 09:27 | 5860789 richiebaby
richiebaby's picture

Extremely overvalued Like his opinion

Fri, 03/06/2015 - 10:12 | 5860998 franciscopendergrass
franciscopendergrass's picture

He would know because he created the last two. It takes a bubble creator to know a bubble creator

Fri, 03/06/2015 - 16:08 | 5862453 Frank N. Beans
Frank N. Beans's picture

irrationally exuberant?

Fri, 03/06/2015 - 09:28 | 5860790 T-NUTZ
T-NUTZ's picture

"we can't argue that we are extremely overvalued in the marketplace."

 

Can't...

Fri, 03/06/2015 - 09:31 | 5860793 SheepDog-One
SheepDog-One's picture

'Over valued'? Pffft....you can't trick me Greenspan! Ima takin out a 7 year car loan to lever up on some sweet ass stawks!

Fri, 03/06/2015 - 09:32 | 5860797 Rainman
Rainman's picture

' ...when rates normalize '   That's funny !

Fri, 03/06/2015 - 13:29 | 5861825 malek
malek's picture

But interest rates are going to get raised...any...day...now!!1!

Muaaaahahahaha!

Fri, 03/06/2015 - 09:34 | 5860804 NDXTrader
NDXTrader's picture

Funny...CNBC's headline is "Greenspan says stocks not overvalued" then the article directly contradicts the headline

Fri, 03/06/2015 - 10:17 | 5861024 geekz_rule
geekz_rule's picture

servicing the executive tl;dr class.

just the executive summary pls...

Fri, 03/06/2015 - 09:38 | 5860814 taketheredpill
taketheredpill's picture

Does not compute...does not compute...click...click...buy...buy..repeat.

Fri, 03/06/2015 - 09:38 | 5860822 Fun Facts
Fun Facts's picture

Alan Greenspan throwing M80's into the ziogangbangkster toilet ?

Something strange going on with Greenspan ever since they had to censor his remarks about gold at the CFR last year in his return to his old 66' roots. That was totally off script.

Maybe he fell down and hit his head ?

He should probably avoid remodeling his flat with power tools because his former mafia members don't take kindly to the truth.

Fri, 03/06/2015 - 09:41 | 5860836 Pumpkin
Pumpkin's picture

I am very suspicious that this old lying fuck is telling the truth.

Fri, 03/06/2015 - 10:04 | 5860956 Bearwagon
Bearwagon's picture

He's not. Once an old lying fuck - always an old lying fuck! He should just jump, this old fuck ...

Fri, 03/06/2015 - 09:43 | 5860849 22winmag
22winmag's picture

"Former Fed Chair"

 

That's right up there with "former murderer" and "former traitor".

Fri, 03/06/2015 - 09:44 | 5860857 yogibear
yogibear's picture

He's the Fed's 3rd party.

Trying to cool an over-heated market.

They want to prick this before it becomes a disaster.

The market has to fall. Bottom line.

 

 

Fri, 03/06/2015 - 14:53 | 5862193 bid the soldier...
bid the soldiers shoot's picture

spot on

Fri, 03/06/2015 - 09:49 | 5860877 TabakLover
TabakLover's picture

Never forget. on Greenspan's list of the 10 people he cares most about..........he has himself 1-9 and tied for 10.

Fri, 03/06/2015 - 09:51 | 5860886 Chump
Chump's picture

You had your chance Greenspan, and look what you did with it.  Quit trying to save face and just ride off into the sunset already.

Fri, 03/06/2015 - 09:52 | 5860891 TabakLover
TabakLover's picture

Oh, almost forgot..........  Gluck Freenspan.

Fri, 03/06/2015 - 09:57 | 5860905 El Hosel
El Hosel's picture

Coming from you this means very little..... Bullish

Fri, 03/06/2015 - 09:59 | 5860930 Shhh dont wake ...
Shhh dont wake the VIX's picture

Some folks just don't get how things work in the new and improved modern era and Greenspan is one of them.  Wealth redistribution via fiat money is always inflating and deflating a bubble some goddamn where.  Stocks only become too expensive ie overvalued when traders no longer have money to buy them with.  Surely not the case after this explosive rise of the top 1%.  As for PE Ratios and other statistics....they don't confer true value , they are just statistics. 

Fri, 03/06/2015 - 10:04 | 5860942 yogibear
yogibear's picture

He came out and said this for a reason. The higher the market gets the more damage it does when it drops.

Greenspan is a tool. He's warning.

Think their starting to realize they have a serious problem with the hot money.

 

Fri, 03/06/2015 - 10:15 | 5861010 geekz_rule
geekz_rule's picture

think they realize?

lolwut?

none of this is accidental or stupidity. 100+ years of agenda driven exercise.

P < P + I

Fri, 03/06/2015 - 10:03 | 5860950 yogibear
yogibear's picture

-

 

Fri, 03/06/2015 - 10:04 | 5860959 Katastrofenhausse
Katastrofenhausse's picture

Yeah, get back to me when you start talking like you did in 1966

http://www.constitution.org/mon/greenspan_gold.htm

 

"... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious proc, get back to me when you ess. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

 


Fri, 03/06/2015 - 10:07 | 5860973 vyeung
vyeung's picture

Wake me up when he finishes his legacy saving scaffolding.

Fri, 03/06/2015 - 10:12 | 5860999 geekz_rule
geekz_rule's picture

dont need a ph.D to talk this shit

but whats really going? we didnt like or listen to him before.. but because he's saying shit - <confirmation bias> that we agree with now.. hes ok?

these people are sinister. this is not some mea culpa.

he continues to be sinister. so.. where are they going with this?

P < P + I

Fri, 03/06/2015 - 10:18 | 5861027 Bearwagon
Bearwagon's picture

That hits the nail on the head. He is sinister - and will continue to be. And they are going to hell with this. They don't plan to - but, hey, stupid is as stupid does ....

Fri, 03/06/2015 - 10:52 | 5861169 Cthonic
Cthonic's picture

He spelled it out clearly: a future of penury for those dependent upon transfer payments.

 

Fri, 03/06/2015 - 10:13 | 5861001 studfinder
studfinder's picture

The party will continue as long as all players participate.  Probably one of the reasons US is fighting Russia.  They want an alternative to USD/ponzi scheme casino stock market. 

I have no doubt the thing will crash...have no idea when. 

Fri, 03/06/2015 - 10:16 | 5861016 Blano
Blano's picture

After listening to him, I'd have to say the ZH headline is wrong. 

He's NOT saying stocks are overvalued generally, but a couple specific sectors may be (tech and something else, I forget now).

Fri, 03/06/2015 - 10:23 | 5861054 DOGGONE
DOGGONE's picture

REMEMBER!!!
JUST THREE FED CHAIR WARNINGS SINCE 1913!!!
http://www.showrealhist.com/3warnsRD.html

Fri, 03/06/2015 - 10:24 | 5861057 Professorlocknload
Professorlocknload's picture

Master Jawboner, ol' Greenie.

Fri, 03/06/2015 - 10:31 | 5861086 JRobby
JRobby's picture

No CAPX. $$ used to buy back stock. No new hiring going on that would contribute to productivity increases.

Fri, 03/06/2015 - 10:36 | 5861103 VW Nerd
VW Nerd's picture

Wow!  American productivity has gone nowhere in the past 9 years..."  Gee, you print your currency like toilet paper, government wastes it like toilet paper, demand for it is derived at the end of a barrel of a gun, and you lament productivity has gone nowhere??  Alan, maybe some people are starting to get it.  Maybe workers are asking themselves why they are investing an hour of their valuable finite time and labor for 10, 12, 15 FRN's, being created in infinite amounts while the Fed and Congress are stuffing their pockets, and the big banks' pockets, with billions? Maybe foreign (especially oil producing) countries are asking themselves the same thing.  Why should They have to trade their finite products and resources for these FRN's being ginned up in profligate amounts, allowing a SELECT FEW to "legally" steal the world's capital?  This is just one of the FTD's (Fed Transmitted Diseases) you and subsequent Fed chairmen have infected the golbal economy with through your policies.  I don't mean to be too harsh....Sorry.

Fri, 03/06/2015 - 11:33 | 5861331 Monty Burns
Monty Burns's picture

I suppose they see the dollar continuing to rise despite all the things you adduce here.

Fri, 03/06/2015 - 11:28 | 5861143 Who was that ma...
Who was that masked man's picture
Alan Greenspan Warns Stocks Are "Without Doubt Extremely Overvalued"

Yeah, and so is Alan Greenspan.

Fri, 03/06/2015 - 12:07 | 5861470 Porous Horace
Porous Horace's picture

The Google sez that Greenspan is worth $10 million. Heck... that's only 1/80th of a Seinfeld (1 Seinfeld = $800 million). I figured he'd be worth at least 1/3rd or 1/4th of a Seinfeld.

Fri, 03/06/2015 - 15:52 | 5862409 Who was that ma...
Who was that masked man's picture

Some people are so poor, all they have is money.

Fri, 03/06/2015 - 16:16 | 5862488 Hohum
Hohum's picture

Career bureaucrats are paid well, but not that well.

Fri, 03/06/2015 - 17:12 | 5862705 Who was that ma...
Who was that masked man's picture

Greenspan may HAVE $10 million but that don't mean he's WORTH $10 million.  Personally, I wouldn't give 50¢ for the old fart.

Fri, 03/06/2015 - 10:54 | 5861174 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

Peter Schiff has given this a fair amount of attention and brings up some EXCELLENT points...  the main being that Greenspam is trying to distance himself from the pending implosion.  These easy money policies are directly out of HIS playbook. 

Now that he sees the trainwreck coming, he's trying to clear his name.

This, to me, is a VERY ominous sign. 

Fri, 03/06/2015 - 12:09 | 5861478 Clowns on Acid
Clowns on Acid's picture

Yo Farmer Joe - Sandy Weill, then Robert Rubin did similar "warnings" about 6 months ago. They are dissappeared into their bunkers. Greenspan was only the bag holder / message boy, thats why he had to wait his turn before giving his mea culpa's. He is not on their league.

This is obvious Greespan trying to save his own ass. he won't. he will be brought to trial. Hillary considered herself teflon .. until recently. The Soros' of the world gave her up. She became surplus to requirements.

Sat, 03/07/2015 - 08:17 | 5864266 Bemused Observer
Bemused Observer's picture

Consider also the "Audit the Fed" talk. To me that was like a shot across the bow, by our politicians. I get the impression that some nervous folks in DC want to remind the Fed that, should this all turn bad, they will NOT be safe, not to take anything for granted.

Seems like a lot of people are jockeying for position...getting a 'fall guy' lined up, just in case. It's being done internationally, and within nations.

I think they realize that the old standby, "Welfare bums are stealing your hard-earned money." just isn't going to work this time. They're starting to eye each other now, looking for the 'fall guy' big enough to explain away THIS mess.

Fri, 03/06/2015 - 11:00 | 5861203 Fix It Again Timmy
Fix It Again Timmy's picture

Hell, I thought he was entombed in some crypt...Well, anyways, he looks like that...

Fri, 03/06/2015 - 11:36 | 5861339 ersatz007
ersatz007's picture

so wait a minute...if money is a 'store' of value, and that value is created by the productive activity of humans, why have we printed so much money if, as Mr. Greenspan says, "American productivity has gone nowhere in the last few years,"

Fri, 03/06/2015 - 12:04 | 5861450 Porous Horace
Porous Horace's picture

Let me translate: "I sold all my stock at the top, so now I need a crash so I can buy it all back at half price."

Fri, 03/06/2015 - 14:44 | 5862142 bid the soldier...
bid the soldiers shoot's picture

Does he mention 'fraud or 'manipulation'?

Fri, 03/06/2015 - 16:09 | 5862458 brushhog
brushhog's picture

"When rates normalize" has replaced "when pigs fly" in the American lexicon

Fri, 03/06/2015 - 18:20 | 5862971 themarketflash
themarketflash's picture

You have to say he's right.  It's standard MBA Finance stuff.  Stocks are the discounted present value of the future cash flows they generate.  Lower interest rate, higher stock prices, higher interest rate lower stock prices.   What surprises me is that he seems to be the only one I hear saying that.

Fri, 03/06/2015 - 18:57 | 5863094 ersatz007
ersatz007's picture

These two guys on CNBC are selling their book on how to trade options. If you order now it's just the cost of shipping and handling. Options are better than stocks and you can make money matter which way the market goes. They said so! Maybe Greenspan just needs to get in on that action and he won't be such a negative nancy.

Fri, 03/06/2015 - 22:43 | 5863716 VW Nerd
VW Nerd's picture

When Greenspan abruptly stepped down in 2006, I took notice immediately, figuring a guy as high as he was on his position of power would never leave his position for no reason.   Never doubting Greenspan's smarts (yes, I don't see him as a dolt), foresight and inside information, I suspected he knew something big was going to get ugly soon.  I waited and watched.  Fall of 07 through Winter of 09 proved my suspicion correct.  I still believe the markets were not allowed to adequately clear.  Time will tell....

Fri, 03/06/2015 - 22:56 | 5863752 homiegot
homiegot's picture

Where the fuck was he the first go round?

Sat, 03/07/2015 - 00:16 | 5863918 not a yahoo
not a yahoo's picture

Irrational Exuberance it isn't. This is the first ever outright negative comment Greenspan ever made in advance as concerns stock market valuations. The oracle has never been this clear. If nothing else, this comment itself should cause an immediate 'correction', shouldn't it? I should be watching CNBC.

Sat, 03/07/2015 - 13:06 | 5864716 To Infinity And...
To Infinity And Beyond's picture

I love when he says "the people that receive it believe they are getting their money back and have a right to it." - REALLY asshole, you mean the money you pilfered from their paycheck all their working lives because you said they were too stupid to plan for retirement themselves. Now they believe they are getting their money back and have a right to it. You are absolutely right they do and when it not there it will be SHTF time.

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