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Greenspan's Insulting Admission Of Fed Culpability
Submitted by Seth Mason via Solidus Center blog,
As if to thumb his nose at the millions of Americans who have undergone long-term financial distress since the late 1990s due to the interventionist monetary policies he implemented, former Federal Reserve Chairman Alan Greenspan, the original engineer of the Fed’s bubble/burst economic paradigm, indirectly admitted to CNBC’s Kelly Evans that the Fed has created unsustainable asset bubbles that could burst when it allows interest rates to rise.
“Mr. Bubble” defended the Fed’s promotion of these bubbles, though, stating though a smile, “It’s good, not bad”:
Greenspan noted that the Fed has been juicing the markets primarily because business investment has been weaker than it has been for any extended period of time since the Great Depression:
And, when asked if this period of asset bubbles will end as badly as the tech and housing bubbles did, Greenspan concluded:
We’re not yet there in a position where it’s crisis. However, the real issue here is going to be when interest rates start to move up.
That’s quite an (unintended) indictment of interventionist Fed policy. On one hand, Greenspan stated that the Fed has inflated asset bubbles, and, on the other hand, stated that the bubbles could burst when it allows interest rates to rise.
But, remember, Greenspan asserted that the bubbles are “good, not bad” because business investment has been so weak. The Fed, according to the former chairman, has therefore been inflating bubbles to promote the expansion of the sluggish Main Street economy. The data, however, say otherwise. There’s a preponderance of evidence that suggests that the Greenspan-Bernanke-Yellen Fed has been pumping torrents of liquidity over the last decade-and-a-half to stimulate Wall Street at the detriment of Main Street, as evidenced by the following charts. (Tap to enlarge explanations in the captions.)
The evidence is pretty compelling. The Greenspan-Bernanke-Yellen Fed has almost certainly been pumping torrents of liquidity since the latter part of the last millennium to promote the expansion of business on Wall Street, not Main Street. But, even if Fed has had the interests of Main Street in mind when inflating bubbles (I don’t know how they possibly could given charts like those), the fact of the matter is, Greenspan started the destructive Keynesian tradition of pumping liquidity to stimulate the economy, and this tradition has created significant economic pain for Main Street in the form of long-term unemployment and underemployment, reduced wages, foreclosures, bankruptcies, reduced savings rates, shuttered businesses, and drained savings and retirement accounts. So, “Mr. Bubble” inferring that the Fed creates unsustainable bubbles for the benefit of Main Street is pretty insulting.
Perhaps even more insulting, Greenspan concluded that business leaders have been hesitant to make capital investments due to a number of external factors, none of which is the bubble/burst economic paradigm he created. Just minutes after indirectly admitting that the Fed has inflated unsustainable asset bubbles, Mr. Bubble implicated entitlement spending, tax rates, global warming, and instability in the Middle East as reasons for lack of business investment.
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Die already, Greedspan!!
I am begining to think Greenspan may have been the ultimate Ayn Rand, Austrian, special forces warrior. Go into the belly of the beast, speak as they do, and hasten the fall from the inside out. Ultimate Trojan Horse. Why siege the city when they throw a party for you coming in with the front gates wide open. Who is John Galt?
It should read Greenspan "Implying" not "Inferring" (I really should stop correcting spelling and grammatical errors at ZH!!) but, nonetheless, the point that Greenspan should be near the top of the "Search and destroy" list remains entirely valid.
Fukin' GreenSpam...
Shamelessly trying to polish the turd that is his legacy.
Lundin - Alan Greenspan in private says Explosive Inflation Coming:
https://www.youtube.com/watch?v=Ohsd0lCYI6Y
"(I really should stop correcting spelling and grammatical errors at ZH!!)"
I, for one, mourn the death of the subjunctive mood.
If only it were still alive!!
Were the subjunctive truly dead, sir, then should you never again hear the following media story:
"Those who think we made the economy worse by all this Fed intervention, should see how bad it would have been had we not intervened. It is not as bad as it would have been and therefore, we are in recovery. For this reason, we recommend MOAR easing be undertaken. Our expectation that consumers spend more this quarter should stimulate the recovery to even greater heights."
The subjunctive rules our markets and media! Alas, it is not the subjunctive but the indicative which is dead!
You give him too much credit. He's a pedophile justifying his own horrible actions to himself. "The kids wanted to be touched. I was helping them explore their sexuality. On balance, it probably did more good than harm." Blah, blah, blah. He crossed the Rubicon long ago. He actually BELIEVES his own shit don't stink now, which makes him twice as dangerous as somebody who's only lying. And he's far from the only one.
Put him under the jail.
NoDebt
The money system is the root of our problem. Of our ignorance.
Capitalism continuous growth, on a finite planet, is the fuel.
Growing demographic is the tinder.
Lack of enough energy will ignite this fire.
The word Greenspan, by then, meaningless.
The guilty still need to go down. Forgotten or not.
what is happening w the fed giving away the printing press IS NOT Keynesian!
look at Harry Hopkins in the great depression for true keynesian economics -
the CASH was spent on PAYING for true economic output -
ie buiding infrastructure -
all that free cash to the jackals and vampires of the banking world didnt go to true economic output but to the FASCISTS and monopolists -
and none trickled down to the actual working folk who BUILD SHIT!
End the Fed and hang those jackals!
Dupe post. Appologies.
Greedspam
Greedspasm
bastard
If there were a Nobel Prize for Screwing Savers and Taxpayers, Greenspan would be a shoe-in.
Ayn Rands fault...lol.
(Inside joke)
I'm laughing ;-)
Now to receive my spanking for violating the "no posting while on vacation" rule. Some things are just worth the pain.
I did agree to the "no bullet earrings to taunt TSA" rule.
Miffed;-)
lol...yeah, I unplugged for a day or so to rebuild my sanity as well.
Oddly enough, no withdrawls ;-)
It's obvious we have some shills here now. Junking Banzai of all people.
In many ways its become a dumbed down version of Pee Wee's Playhouse, so ya get what ya get.
Here's a good one, remember all the commenters saying Jihad John was a CIA spook just trying to make the ISIS "freedom fighters" look bad for slaughtering Shia, Yazdis, and Christians they happen to stumble across?
Well, he's kinda bummed about his family being asked probing questions about his upbringing & his actions, so you know, lets all have a Pity Party for Jihad John or sumpin ;-)
http://www.thesundaytimes.co.uk/sto/news/focus/article1528409.ece?CMP=OTH-gnws-standard-2015_03_07
Those shape shifting reptilians just replicate...
Yes, Greenscum, we know, nasdaq 5K is awesome, awesome for rich fucks like you.
Fuck the banksters; either I get a return on my investment/labor or I do not invest/work. I'm sick of this low interest rate policy that enriches the fat cats at the expense of the working class. It is time for a thriving black market here in America......
Who is paying this guy to keep his mouth moving?
He was bought and paid for a long time ago. Now he's just doing what he's told.
We are!
its all about Gov funding, they bought the bonds to keep the govt going, not their worried bout excpessive monetary expansion but they need rates to remain low (to keep the govt going) so they need stocks to sell off and moeny to go back into bonds (hey disdnt see that coming) ie either way money comes ti the US govt to keep it funded, because the funding is what keeps the people in power...
The govt will never act againest its own interests...the Feds a tool of the Govt..
tok1
The FED is a tool of the bankers and not the government.
Again, don't take my word for it:
http://www.zerohedge.com/news/2014-09-26/how-goldman-controls-new-york-f...
In an interview for This American Life, Segarra says, "credibility at the Fed is about subtleties, perceptions as opposed to reality."
http://www.thisamericanlife.org/radio-archives/episode/536/the-secret-recordings-of-carmen-segarra
Just got a new system. Does Mozilla offer AdBlock or something similiar? Mozilla is moving much faster than chrome with out adblock.
Amazingly, the duckduckgo.com search engine will work with Chrome or FF. Yes... there is an AdBlock for FF.
Why isn't the Great Recession more accurately known as the Greenspan Recession?
in the end life is not phony. it's stone cold exacting, and, the likes of this guy will find themselves answerin' for an eternity.
"it was so easy, inflating the FED's balance sheet..while regreatable, I did enrich alot of elite jews not that it was my main concern. no, no, it was for main street. all for main street. I cannot be held accountable for it not working it was the only thing I could do, ask rob Rubin he will tell you.. it's corzine who should be standing here." a greenspan before being hung until dead.
Banzai nailed it.
Oh yeah, and - this time it's different. TTID.
Fed suppresses normal business cycle potentiating larger Black Swans. "What you resist persists!" http://en.wikipedia.org/wiki/Black_swan_theory …
It’s always someone else’s fault. Even Madoff has yet to fully admit guilt. I can hardly wait until the only ones the Banksters have left to blame are the gods of economics, and we sacrifice virgins on a weekly basis to appease them. I’m sure Congress will be all OK with that, as long as the printers keep running.
madoff lost his wealth, his freedom, his wife, and a son, and he still can't take responsibility for his own conduct.
Is this greedy old fucker going to cheat death forever? He already looks like a fucking vampire turned zombie and a walking dead man.
Greedy fucker is evil personified!
All those yrs Alan Greenspan, as fed chair, mumbled whateverthefuck every quarter and nobody understood a word he said. now there is an article about this guy every 2 days, and he is actually coherent..and worried.
Should have host those (and other) images locally (on occasion). Excellent stuff though.
the destruction of the dollar "is
good, not bad."
ok? so ......
"Mr. Bubble implicated entitlement spending, tax rates, global warming, and instability in the Middle East as reasons for lack of business investment."
When the going gets tough, "wealth creators" hide.
How can we entice them back off their luxury yachts when there are no easy profits to gorge on?
...
Greenspan continued the Friedmanian BW revoke of "our money your problem" fiat print machine tradition to feed subsequently the Reaganista FIRE economy machine after Volcker and instilled a dose of mega deflation austerity...there, fixed it... in line with Pax Americana's true mantra of Dear Henry's great game of detente to control world oil resources for the US/EU (OECD) oligarchy under the Nato hard hat of MIC supremacy. We were in the age of the Trilateral to control the world economy under $ hegemony.
Nothing to do with Keynes.
Subsequently, after the catholic kings of neo-liberalism--Reagan and Thatcher-- were in place that fiat money was captured into pumping the WS FIRE pump; all to the glory of NWO's follow up with Chindia outsourcing strategy and creation of slave labour arb mantra of the neo-oligarchy (now a raging financial cancer that has been disseminated globally by the private banks and their algo controlled hold of the financial web bringing down the state sector by "bail-in" debt transfer and Krugman's/FED's subsequent play to "outprint" the banksta machine by CBs in order to save the Titanic--some hope!).
So lets resume the time line and chronology : Neo-keynesianism à la Krugman has been the 11th hour response once the Lehman moment had occurred to "fix" the mess of Chicago school floating rate money printing that inaugurated the petrodollar recycling bonanza now gone viral in asset pumping fed on steroids that has created the NWO of 1% private sector Oligarchy.
Why does ZH short circuit its own time line logic to serve a false dichotomy ?
You cannot blame the Chicago School for the bullshit of the Keynesians, sorry, the argument doesn't hold up. You could blame Reagan for not doing enough to break the hold the Central Bank had during his early Presidency, but as a result of high interest rates, he lost control of the Senate, and had to deal with the collectivists of Congress, so what could he really do? The Republicans, led by that whack-job McCain then screwed their own President when Bush was at the helm, and this allowed the REAL Marxists power to assume its dictatorial mandate. No, the real blame is with the People of the United States who have tolerated collectivism for far too long and are going to pay a severe price. The rest is just the way the world works, and with a very small exception to human history, has ALWAYS worked.
what marxists ???
Since when are JPM, Walmart and Apple scions of marxism?
These corporates along with big Oil and big MIC are what the US oligarchy defends !
How can you even pretend and extend that marxist meme to those running Pax Americana today.
Even Putin is not marxist anymore nor is China. Just Venezuela !
So much for the influence of marxism on current geo-politics!
That deathcross chart above with WS assets fed on steroids is NOT the product of Marxism !
Quite the contrary : all based on neo-feudal oligarchy capitalism running wild !
Since the advent of the FED, you can trace EVERY SINGLE BOOM and BUST to the slime who run the system. They have enabled World Wars, Revolutions, and the Death of hundreds of millions, and they have done this to the point where the whole system is in danger of collapse, all in the name of "managing the business cycle." They have RUINED my industry.
CUNT
Greenspan speaks for all those in Finance in America/EU with early onset dementia. Given the lunacy projected by Greenspan et al. it would seem prudent to initiate competency exams for so-called 'Economists' en masse.
"Mr. Bubble [Greenspan] implicated entitlement spending, tax rates...as reasons for lack of business investment.
He is fingering Big Government's role in reducing business investment and he's right about that. If we had a healthy, independent population that wasn't chemically dumbed down, able to think clearly and reduce government's role burdoning our global competitiveness, we just might be able to cast off these Fed parasites and get back in the race.
While the parasitic Fed and their buddies on Wall St are a blight on our economy, we need to focus on our biggest challenge of getting healthy and independent of costly big government taxes and regulation and become once again producers of low cost products.
This means returning to a lean, clean, natural health lifestyle and eliminating the debilitating poisoning agenda of poison-based farming and medicine, vacines, fluoride and GMOs to name a few schemes that are handicapping our competitiveness.
China took our manufacturing jobs because they are not burdoned by these competitive-destroying poisons that they rejected long ago. America is in this fix because we accepted the poisons and made ourselves uncompetitve.
As Dr Russell Blaylock says, "now we have a nation chemically dumbed down and dependent on government" and therefore uncompetitive.
Dear Mr Greenspan,
... and how do you rationalise the corporate share buybacks ....