The Demented "Old Normal" Speaks: Greenspan Forgets His Lines From Year Ago, Now Hearts QE

Tyler Durden's picture




 

Forget 'irrational exuberance', forget 'deregulation of derivatives', Big Al is back and this time he seems to have forgotten any- and every-thing we has ever said. It was only a year ago that Greenspan told CNBC "I am ill-aware of anything that really worked. Not only QE2 but QE1" and yet today the mumbling-'maestro' pronounces, via Bloomberg:

  • *GREENSPAN SAYS EQUITY STIMULUS IS HELPING TO DRIVE ECONOMY
  • *GREENSPAN SAYS EQUITY STIMULUS IS UNDERESTIMATED
  • *GREENSPAN SAYS EQUITY IS COLLATERAL OF FINANCIAL SYSTEM

So it sounds like Alan has joined Ben in the parade of 'the-market-is-the-economy' thinkers as now the critical action of all the greatest minds in our economic policy-makers are convinced that debasement manufacturing a rising equity market (by whatever means necessary) is key (and nothing else!) though his schizophrenia was completed during his interview with Bloomberg's Tom Keene just minutes ago:

"The first thing we do is stop doing what we are doing." Says leave markets alone and let them work.

Greenspan also added, for sincerity, that:

  • *GREENSPAN SAYS THERE IS A `HUGE FISCAL CLIFF'
  • *GREENSPAN SAYS `INTEREST RATES ARE LOW BEFORE THEY GO UP'

But it appears we should not worry about any of that, since:

  • *GREENSPAN SAYS STOCKS ARE `CHEAP'

The piece de resistance, confirming that once one passes 70, one should never leave home without their favorite antipsychotic medicine:

  • GREENSPAN SAYS GLOBAL SAVINGS PUSHED DOWN LONG TERM RATES
  • GREENSPAN SAYS HOUSING BOOM WASN'T AN AMERICAN PHENOMENON
  • GREENSPAN SAYS LOWERING RATES IN 2003 WAS RIGHT THING

And, drumroll:

 

  • GREENSPAN SAYS LOW FED RATES DIDN'T FUEL HOUSING BOOM

 

Is it any wonder Paulson & Co got eviscerated listening to this.

Recall from CNBC in July last year:

"The former Federal Reserve Chairman stated in a CNBC interview that the Fed’s quantitative easing programs under Ben Bernanke have done little to increase lending and stimulate the U.S. economy. ”There is no evidence that huge inflow of money into the system basically worked. It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion. Aside from that, I am ill-aware of anything that really worked. Not only QE2 but QE1.”

 

Going forward, Greenspan said he “would be surprised if there was a QE3? due to the damaging effects it could have on the value of the U.S. dollar."

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Tue, 05/01/2012 - 11:20 | 2388218 Aziz
Aziz's picture

"Libertarian"

Tue, 05/01/2012 - 11:21 | 2388220 Death and Gravity
Death and Gravity's picture

"Ex-Randroid"

Tue, 05/01/2012 - 11:24 | 2388239 Pinto Currency
Pinto Currency's picture

 

 

Toady psychopath.

Tue, 05/01/2012 - 11:44 | 2388344 knukles
knukles's picture

5150
293.81

Contracted Weaselthelioma from Reptilian Shape Shifter Sociopath, Paul CrapMan.

 

Tue, 05/01/2012 - 11:53 | 2388378 hedgeless_horseman
hedgeless_horseman's picture

 

 

Nominally human.

Tue, 05/01/2012 - 12:00 | 2388400 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Incontinent Greenspan Dumps a Pantload on Bloomberg's Tom Keene"

 

Tue, 05/01/2012 - 12:38 | 2388477 The Big Ching-aso
The Big Ching-aso's picture

 

 

"There, there, Mr. Greenspan.    Let's wipe that tapioca pudding off your chest before the interview, ok?"

Tue, 05/01/2012 - 12:47 | 2388544 Chaffinch
Chaffinch's picture

If he's not senile he must have been tortured / threatened / promised something really really nice... (does he already have a Nobel Prize? Does he have an Oscar?)

Tue, 05/01/2012 - 11:54 | 2388380 francis_sawyer
francis_sawyer's picture

Hebrew Profit (I mean 'Prophet')...

Tue, 05/01/2012 - 11:55 | 2388384 WonderDawg
WonderDawg's picture

Knuksie! How you doing? Busting out of here to play golf this afternoon, beautiful day here in the Deep South. I hope life is treating you well. (Shot a 74 last weekend, had one of those days)

Tue, 05/01/2012 - 12:00 | 2388402 francis_sawyer
francis_sawyer's picture

I kno how it goes... Lipped out that 4 footer on 18 for a 73, right?

Tue, 05/01/2012 - 12:08 | 2388439 Divided States ...
Divided States of America's picture

If anyone here is in risk mgmt, they should know that Equities play a bigger role to the economy than the Bond market. Which is why when you watch the 'news' on MSM, you here jack shit about bond indices...just the usual crap "Dow surges to highest point in 4 years". They will protect it with all their power since confidence is driving off the Equities market and not the other way around.

Secondly, the govt has been issuing Treasuries like mad for the past few years? Well firstly they are funding the banks with free money and secondly, these 'securities' are considered SAFEST and of HIGHEST quality in the banks capital. Thus, the benefits of holding them is two fold. The banks look pristine with all this AAA rated paper on their books. Thats why they want to get Egan Jones for trying to mess up their plan.

I mean we obviously know that the UST is the biggest ponzi scheme ever but nobody seems to give a rats ass. You think these Basel agreements that are supposed to come online soon means anything?? They as useful as politicians.

As well, I have mentioned this before already but Equities are also considered Tier 1 capital so if the banks are loaded up with UST and Equities, this gives everyone that they are well capitalized.

Tue, 05/01/2012 - 12:12 | 2388454 francis_sawyer
francis_sawyer's picture

So, essentially, the winner is whoever can tell the best 'lie'...

Tue, 05/01/2012 - 12:23 | 2388489 Deep79
Deep79's picture

If anyone here is in risk mgmt, they should know that Equities play a bigger role to the economy than the Bond market.

I stopped right there. Has to be one of the dumbest comments i have ever read.

 


Tue, 05/01/2012 - 12:35 | 2388519 Divided States ...
Divided States of America's picture

No need to junk me but yes after studying Risk Mgmt, I realize its nothing more than a ploy by the investment industry to pretend they are regulating it properly.

Tue, 05/01/2012 - 12:47 | 2388546 Deep79
Deep79's picture

What?????

Are you Drunk?

 

 

Tue, 05/01/2012 - 13:56 | 2388712 knukles
knukles's picture

Hey Dawg!
Whazappenin?
Got a game this afternoon myself!
Now a 74 is an OMG in my book, Dawg.  I've never broken 80.
Keep on, my brother.
I'll catch up with you this evening to swap lies.
Blessings,
K

Tue, 05/01/2012 - 11:47 | 2388352 AccreditedEYE
AccreditedEYE's picture

"Contra Indicator"

Him and Biggs are about neck and neck as all time champions...

Tue, 05/01/2012 - 11:24 | 2388243 Eclipse89
Eclipse89's picture

"Alzheimer-affected"

Tue, 05/01/2012 - 11:34 | 2388282 King_of_simpletons
King_of_simpletons's picture

I always knew "Greenspeek" was gibberish and the media pundits (who are assholes) were making up shit from his pootie-tangness (http://en.wikipedia.org/wiki/Pootie_Tang). I have been vindicated.

Tue, 05/01/2012 - 11:37 | 2388310 Pinto Currency
Pinto Currency's picture

 

 

There is an old saying "you can't polish a turd".

But Keene, Bloomberg, CNBC, WSJ, NYT, and the rest of the MSM keep buffing away.

THese people are all complete psychopaths who fear discovery.  So they chatter, chatter, chatter - and the media gives them coverage.

Tue, 05/01/2012 - 11:49 | 2388355 BigJim
BigJim's picture

Alan Greenspan - surely one of the greatest turncoats in libertarian history.

How could the man who wrote one of the seminal essays on the importance of gold:

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

come out with such drivel, without his head exploding?

Some people posit he's been secretly doing his best to crash fiat and get us back on the gold standard. So far, he and his protege Ben haven't been doing too badly.

Tue, 05/01/2012 - 11:55 | 2388383 DeadFred
DeadFred's picture

I seem to have missed it. Does he say what flavor the KoolAid was? The devil is in the details.

Wed, 05/02/2012 - 02:10 | 2390363 StychoKiller
StychoKiller's picture

Reminds of that scene in "Lord of the Rings" where Frodo offers the ring of power to Gandalf:

Gandalf:  "Understand, that I would try to use the ring for good..."

Tue, 05/01/2012 - 11:50 | 2388362 LetThemEatRand
LetThemEatRand's picture

"Ex-Randroid"

Not ex-anything.  He studied with her.  He wrote a chapter of one of her books.  This is what happens when Randroids are in charge.   There's theory, and then there's reality.

Wed, 05/02/2012 - 02:21 | 2390369 StychoKiller
StychoKiller's picture

"Politics works through passion and prejudice, otherwise we'd all go stark, staring sane!"

Ayn Rand's logic was impeccable, Progressive/Socialists...not so much!

I submit the charge that the reason you're afraid of Ayn Rand's "theories", is that they would actually solve a lot of problems and put yer Big Brother out of work!

We have been brought up by the progressives (liberals) that without stealing from our neighbor, there is no way to help the poor and those that need help.  That is the biggest lie every put out there...and most of the American people have fallen for it.

Government is constantly trying to find a way to have unlimited creation of currency (Euros, FRNs [Federal Reserve Notes]) and credit without inflation, unlimited spending and deficits without economic ruin, unlimited national debt without repayment, and unlimited growth of power and plunder (regulation and taxation) without revolt.

They can no more halve things and get the sensual good, by itself, than we can get an inside that shall have no outside, or a light without a shadow.

Tue, 05/01/2012 - 11:24 | 2388246 slaughterer
slaughterer's picture

GREENSPAN SAYS GO LONG EVERY US EQUITY IN THE MARKET
GREENSPAN SAYS THROW OUT ALL RISK MANAGEMENT--THE TIME TO HAVE  A ONE-SIDED LONG BOOK HAS COME

GREENSPAN SAYS STOCKS LIKE PCLN, CMG, AND AAPL ARE THE EQUIVALENT OF GOLD DURING THE GOLDRUSH.  EVERYBODY SHOULD BUY THEM

GRENSPAN SAYS EVERYBODY SHOULD HEED BARTON BIGGS, JOE LAVORGNA AND BIRYANI AS INFALLIBLE GUIDES TO THIS MARKET

GREENSPAN SAYS THAT BERNANKE IS THE SECOND COMING OF HOWARD ROARKE AND THAT AYN RAND WOULD BE PROUD OF BERNANKE

Tue, 05/01/2012 - 11:42 | 2388337 vast-dom
vast-dom's picture

I'm feeling dementia coming on strong via osmosis....i am confused.............by....these........rigged..........fucked.......up..........drool............drool.......slop...slop..........ta

Tue, 05/01/2012 - 11:21 | 2388222 Deep79
Deep79's picture

When is this guy gonna die?

 

 

Tue, 05/01/2012 - 11:27 | 2388256 digitlman
digitlman's picture

Agreed.

Tue, 05/01/2012 - 11:49 | 2388359 bigdumbnugly
bigdumbnugly's picture

don't wish that on him.  he may look dead but because of that he is one of those guys who never ages it seems...

besides, i loved him in The Godfather until he came to Micheal with that deal at the funeral and they had to rub him out.

that was him, wasn't it?

Tue, 05/01/2012 - 12:06 | 2388427 TheFourthStooge-ing
TheFourthStooge-ing's picture

I hope Greenspan, Buffett, and Munger all live at least another twenty years. I'd like to see them unable to feed themselves, shitting their britches hourly, and yet with enough functional brain power (assuming they ever acquire it) to see and comprehend the damage that they've wreaked on humanity.

 

Tue, 05/01/2012 - 11:29 | 2388264 NotApplicable
NotApplicable's picture

I noticed that he didn't accompany Andrea to the WH Correspondent's Dinner last week. Likely interfered with bath time, but who knows?

Tue, 05/01/2012 - 11:41 | 2388329 The Fonz...befo...
The Fonz...before shark jump's picture

he died 4 years ago...this is just a hologram they wheel out

 

actually he is correct....when inflation hyperinflation hit then the stick market is gonna roar just to keep up lol it happened in Zimbabwe

 

greenspan when you die I am pissing on your grave...

Tue, 05/01/2012 - 11:51 | 2388364 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

  he's kind of like our Franco ....?

Tue, 05/01/2012 - 11:44 | 2388343 Kaiser Sousa
Kaiser Sousa's picture

"When is this guy gonna die?"

 

when we the ones he and his ilk have fucked put bullets in there domes....

 

Tue, 05/01/2012 - 16:45 | 2389288 Bansters-in-my-...
Bansters-in-my- feces's picture

Not soon enough...!!!

Tue, 05/01/2012 - 11:22 | 2388223 Dreadker
Dreadker's picture

*GREENSPAN SAYS STOCKS ARE `CHEAP'..... WHEN VALUED IN GOLD OR SILVER

 

*FIXED*

Tue, 05/01/2012 - 11:38 | 2388315 TheSilverJournal
TheSilverJournal's picture

Stocks are cheap in dollar terms, since it's the dollar on the verge of tanking.

In terms of gold and silver, stocks are set to get much much cheaper.

Tue, 05/01/2012 - 11:39 | 2388321 Dreadker
Dreadker's picture

Thats true unless your source of income is the dollar... then not so much ;-)

Tue, 05/01/2012 - 12:05 | 2388417 TheSilverJournal
TheSilverJournal's picture

But stocks are very expensive in terms of gold and silver. To sell your gold and silver to buy stocks would be a wealth loser.

Tue, 05/01/2012 - 11:28 | 2388224 Cognitive Dissonance
Cognitive Dissonance's picture

It's time Big Al hit the (Geritol) bottle and then turn his attention to shagging Andrea Mitchell, his darling wife and propaganda master.

Sorry. Was that my out-loud voice?

Geritol

Tue, 05/01/2012 - 15:28 | 2389008 Meatballs
Meatballs's picture

Easy on the meds- I think Geritol and DELUSIONOL might be a deadly mix for this geezer. :)

 

Tue, 05/01/2012 - 11:23 | 2388230 Gene Parmesan
Gene Parmesan's picture

If I were Greenspan I wouldn't be showing my face much these days.

Tue, 05/01/2012 - 11:46 | 2388346 Vagabond
Vagabond's picture

These guys truly have no shame.

Tue, 05/01/2012 - 11:59 | 2388393 WonderDawg
WonderDawg's picture

With a face like that you got nuthin to laugh about...

Tue, 05/01/2012 - 11:25 | 2388231 ebworthen
ebworthen's picture

So debt on the backs of future generations, currency debasement, and inflation are now "equity" or capital?  Did Ben blow some hopium smoke up his ass?

Tue, 05/01/2012 - 11:23 | 2388234 mrdenis
Tue, 05/01/2012 - 11:24 | 2388237 TradingJoe
TradingJoe's picture

Diggin' Up Big Al, just shows how desperate they really are!

Tue, 05/01/2012 - 11:24 | 2388242 Milton Waddams
Milton Waddams's picture

Greed spin already pleaded insanity in front of Congress a few years ago - paraphrasing ''everything I believed to be true about economics and markets was apparently wrong. Lol, sorry'

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