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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:


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:


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


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


And, drumroll:




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


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


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


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


Are you Drunk?



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

Hey Dawg!
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.

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


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 ( 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:

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


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





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

I'm feeling dementia coming on strong via osmosis....i am

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


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




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?


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'

Tue, 05/01/2012 - 11:26 | 2388249 ebworthen
ebworthen's picture

lol, yup.... "I had no idea people on Wall Street would be so greedy."

Yeah, sure Alan, sure.

Tue, 05/01/2012 - 11:25 | 2388244 Broccoli
Broccoli's picture

Stocks are cheap valued in dollars since the base case for market valuation should be titled "The Weimar Republic Case."

Tue, 05/01/2012 - 11:24 | 2388245 Nid
Nid's picture

Testicle lockbox...

Tue, 05/01/2012 - 11:25 | 2388247 The trend is yo...
The trend is your friend's picture

I needed confirmation of getting out and going short.  Let's see, May 1st, Closed Euro so no drama in the air, a surprise ism number and good ol greenspan telling me stocks are cheap.  If the signs of a set up aren't staring you in the face i have a bridge that needs to be sold

Tue, 05/01/2012 - 11:27 | 2388248 Benedict Farse
Benedict Farse's picture

Greenspan drinking the cool-aid:

Tue, 05/01/2012 - 11:27 | 2388257 cat2
cat2's picture

Election Year so the story is Stock Market Index is all that matters (since it's the only "good news" story)

Tue, 05/01/2012 - 11:26 | 2388258 somethingelse
somethingelse's picture

let's all join in the sing-a-long:

"The Market IS the Economy, The Market is the Economy,

     high-ho the derry-o, the market is the economy."

(just because a song is currently in power rotation getting heavy no means indicates it will be an enduring classic)

Tue, 05/01/2012 - 11:33 | 2388294 NotApplicable
NotApplicable's picture

I was thinking more of a Kumbaya version (being Mayday and all that).

Tue, 05/01/2012 - 11:29 | 2388268 DeficitAlchemist
DeficitAlchemist's picture

Worst Fed Chair ever residied over most benign conditions and managed to build biggest landmine for citizenry to face... has converted FED to Buyer of last resorts for the stock primary role..


I am amazed this guy still gets airtime and is not tarred and feathered.. is it merely 'for entertainment' purposes? he was wall streets bitch.. and has been found out for it, even by the dumbest retail investor..?

Tue, 05/01/2012 - 11:34 | 2388299 NotApplicable
NotApplicable's picture

Technically, they're all the worst. Except for perhaps Benjamin Strong (he died before they could get the scam going full throttle).

Tue, 05/01/2012 - 11:30 | 2388276 Caviar Emptor
Caviar Emptor's picture

Greenspan: Inflation's contrarian indicator. 

Tue, 05/01/2012 - 11:30 | 2388277 surfsup
surfsup's picture

"Sir Alan"   (Nothing else needs to be said... )

Tue, 05/01/2012 - 11:36 | 2388302 NotApplicable
NotApplicable's picture


Tue, 05/01/2012 - 11:31 | 2388285 barliman
barliman's picture


No place better than CNBC ...

... for the world to see THEY have finally gotten "Bubbles" Greenspan's meds adjusted so he toes the party line.

It's only fair since they've been using Andrea as the guinea pig all this time.


Tue, 05/01/2012 - 11:31 | 2388287 spekulatn
spekulatn's picture

Them there pesky internets keeping elite bullshi**ers (somewhat) honest. Who knewz? Well done ZH and her denizens worldwide.


"The system we have currently is not a monetary system per se but a kind of looting. It is based on the dollar reserve system itself that instructs the Saud family to trade oil for dollars and nothing else."


"There is nothing humble about what Bernanke is doing or has done. He's playing around with the lives and savings of billions. It's impossible for a handful of good, gray men to manage a global economy of tens of trillions. It cannot be done."

Tue, 05/01/2012 - 11:39 | 2388320 NotApplicable
NotApplicable's picture

I love that pic (as well as The Daily Bell).

Tue, 05/01/2012 - 12:00 | 2388403 Dr. Engali
Dr. Engali's picture


Tue, 05/01/2012 - 11:32 | 2388288 Rathmullan
Rathmullan's picture

Alzheimer's is such a cruel disease

Tue, 05/01/2012 - 11:39 | 2388289 Bam_Man
Bam_Man's picture

Is it possible that the Fed, ECB, BOE and BOJ have been accepting equities (or even equity derivatives - ie. "in the money" index options) as collateral? It sure sounds like it.

If so, his comments make a bit more sense, since he would be "talking his (Bernanke's) book".


Tue, 05/01/2012 - 11:36 | 2388291 virgilcaine
virgilcaine's picture

What does he actually do now?  It's like he actually never left the Fed.  He's getting that old mojo back just before his "Fed models" blew up.

Tue, 05/01/2012 - 11:33 | 2388292 judejin
judejin's picture

greenspan loves creative destruction.

"let the fed destroy itself" -- greenspan and ron paul are on the same page.

Tue, 05/01/2012 - 11:33 | 2388293 surfsup
surfsup's picture



IED's are of many varieties... 

Tue, 05/01/2012 - 11:37 | 2388313 NotApplicable
NotApplicable's picture

Funny, I remember back in the day when it was the collateral of the manufacturing system.

Wealth Transfer, Bitchez!

Tue, 05/01/2012 - 11:34 | 2388296 YesWeKahn
YesWeKahn's picture

Is he still alive? Is the dead man talking?

Tue, 05/01/2012 - 11:35 | 2388303 YesWeKahn
YesWeKahn's picture





Translation: someone else's fault. Bush?

Tue, 05/01/2012 - 12:03 | 2388409 riphowardkatz
riphowardkatz's picture

if Greenspan volckered he would have not only been kicked to the curb, he would of most likely been arrested  or at the least slandered. It is a complete misunderstanding to think these guys can just raise rates without repercussions. Congress , the president and the constituents would not and will not except the pain that would accompany a fed rate raise.


Tue, 05/01/2012 - 11:37 | 2388309 riphowardkatz
riphowardkatz's picture

favorite guy in this whole debacle. he never lies or is wrong you just have to read into what he is saying. The master of speaking the truth while telling people what the want to hear. I will translate for all those that haven't figured it out


    100% true the economy in the short terms is being driven by stimulus. If it wasnt there we would have a huge collapse. Of course in the long run that is the best outcome but very few care about the long run.



    100% true. The effects are immense doesn't mean they are positive.


         Again 100% spot on.


100% true they are cheap relative to the doubling of money supply 10% yoy growth for 20+ straight months of money growth. They are cheap relative to the amount of money now in existence.


100% true. Low rates are a symptom of a the philosophy of statist wealth redistribution. The housing boom was fueled by people's desire for everyone to be rich regardless of their producitve output.


Tue, 05/01/2012 - 11:59 | 2388399 EscapeKey
EscapeKey's picture

100% true. Low rates are a symptom of a the philosophy of statist wealth redistribution. The housing boom was fueled by people's desire for everyone to be rich regardless of their producitve output.

Right, so let's recap.

In the aftermath of the 2008 crisis, the Bank of England lowered base interest rates, which in turn reversed the significant drops in the housing markets. Except that you now claim that these aren't at all connected.

Here's a quote by Eddie George (former BoE governor):

"The Bank of England deliberately stoked the consumer boom that has led to record house prices and personal debt in order to avert a recession, the former Bank Governor Eddie George admitted yesterday. 
Lord George said he and his colleagues on the Monetary Policy Committee " did not have much of a choice" as they battled to prevent the UK being dragged into a worldwide economic slump by slashing interest rates. And he said his legacy to the current MPC was to "sort out" the problems he had caused. 

Tue, 05/01/2012 - 12:52 | 2388553 riphowardkatz
riphowardkatz's picture


Once you can understand that article you should understand what I mean. Low rates are an effect of other causes. Greenspan is correct in saying that low rates were not the cause in the context of not being the ultimate root cause.

BTW housing prices boomed from the 70's through the 2008 they went exponential in 2002 or so but the boom had already been taking place. The cause was an increasing supply of money which led to more credit.  It can be argued that lower rates had some effect but again were not the cause

Tue, 05/01/2012 - 11:39 | 2388319 Snakeeyes
Snakeeyes's picture

Thanks Greenspam for chipping in on the housing bubble and crash started by Clinton and Fannie Mae.

Tue, 05/01/2012 - 11:40 | 2388322 The Alarmist
The Alarmist's picture

Nice to hear from the Ghost of Christmas Past. Wonder who they are going to cast in the role of Ghost of Christmas Future.

Tue, 05/01/2012 - 11:45 | 2388340 Dr. Engali
Dr. Engali's picture

Obummer.  He will be the face of death as TPTB unleash their next phase.

Tue, 05/01/2012 - 11:40 | 2388323 Dr. Engali
Dr. Engali's picture

Is there anybody out there really take this guy seriously? Or does everybody just roll their eyes and politely nod their head as he recalls the "glory days"?

Tue, 05/01/2012 - 12:54 | 2388558 riphowardkatz
riphowardkatz's picture

He is a true genius. I take everything he says very seriously. I suggest you read into what he is really saying and learn something.

Anyone that can write this is not idiot. And he has recently said there is nothing he would take back from that article. Once you understand the context he is operating in you can start to understand exactly why he is one of the smartest people on the planet.  

Tue, 05/01/2012 - 11:43 | 2388338 TWSceptic
TWSceptic's picture

They are all lying scum just telling the sheeple what they need to hear. Ignore all MSM and you're much better off.

Tue, 05/01/2012 - 11:46 | 2388348 Benjamin Glutton
Benjamin Glutton's picture

What would May Day be without irrational exuberance from the 1st God of Exponential Paper.

Tue, 05/01/2012 - 11:46 | 2388349 TuffsNotEnuff
TuffsNotEnuff's picture

Sure, Greenspan was always a shill as well as a whore for the Criminal Class.

But evaluating this policy recommendation requires perspective. First, get clear what a Balance Sheet Recession does to an economy. Why this is different from other modes of operation in a macroeconomy.

Richard Koo of Nomura. The book, the lectures. Then come back with a non-ideological take on capitalism. (Which would also work under socialism or most forms of mixed-command economies.)

Details matter. The comments here suck.


Tue, 05/01/2012 - 11:50 | 2388365 SmoothCoolSmoke
SmoothCoolSmoke's picture

Guck Freenspan.

Tue, 05/01/2012 - 11:50 | 2388366 rosiescenario
rosiescenario's picture

This tribe has one totem.....

Tue, 05/01/2012 - 11:52 | 2388369 firstdivision
firstdivision's picture

Paulson & Co P&L since bringing Greenspan on....nuff said on the lack of anything of value from this guy.

Tue, 05/01/2012 - 12:04 | 2388416 Toxicosis
Toxicosis's picture

Fucking lying Greenspan.  Still trolling for his uber elite old boy's club.  Savings NOT equity is the collateral of the financial system.  This old boy didn't forget, he just conveniently decided to change his mind to suit the will of the .1%.  I certainly like how China handles these kind of financial dissidents who rape and pillage the population or scam for personal/private gains, a two year stint waitin' to die and them hang em high.

Tue, 05/01/2012 - 18:03 | 2389488 Centurion9.41
Centurion9.41's picture

Sorry Toxi, there is NO collateral in the financial system.  The whole thing is built upon "faith" in the US to economically grow and the stability and ability of the government to leve taxes.

The Fed system is merely the hand of the puppet master running the financial game.

Tue, 05/01/2012 - 12:07 | 2388430 JR
JR's picture

Once Greenspan signed on with the Fed cartel as its mumbling message boy, his contacts with truth, morality and loyalty to his country…like Bernanke's…were abandoned.  Except for occasional bouts with dementia, Greenspan stuck to the script, the Fed is essential.

As Bill Black related in his incredible interview with Chris Martenson on ZH this week, Greenspan dismisses any thought that fraud can exist in the market.

In his first meeting over lunch with the new head of the Commodity Futures Trading Commission Brooksley Born, Greenspan said, to Born’s utter amazement: We’re going to disagree because you believe that fraud provides the basis for regulation. (It was Greenspan who was hired by Charles Keating as a lobbyist to recruit the Keating Five from the U.S. Senate in 1987 to prevent law enforcement in the Lincoln Savings scandal; Keating became the most infamous of the S&L frauds in the 1980s and 90s.) If there is no fraud, of course, according to Greenspan there is no need for regulation.

If we’re not dealing with fraud, we’re not dealing with law, and we’re not dealing with justice. We are dealing with the destruction of a great nation.

Tue, 05/01/2012 - 12:13 | 2388433 SheepDog-One
SheepDog-One's picture

'Stocks are 'cheap' here at all time record highs....oh ok that makes a lot of sense...

The last time the DOW was at these levels wasnt oil about $25 and the interest rate at 5%?

Tue, 05/01/2012 - 12:10 | 2388444 GMadScientist
GMadScientist's picture

Ah, good old, "I thought the junkies would recognize the hazards of addictive narcotics and self-regulate." Greenspun.


Fuck that bubble-blowing bloviator.

Tue, 05/01/2012 - 12:11 | 2388449 John Law Lives
John Law Lives's picture


Translation: The Fed can't fix the housing market or the job market, so they pump equities and then LIE to the masses about the impact their actions have on real inflation.

Tue, 05/01/2012 - 12:16 | 2388461 fresno dan
fresno dan's picture

Green Allanspats, maestro, savant, bon-viant, master swordsman of money honeys, proclaimed his analysis of the baltic card board box 3rd derivative cubed, diced, and slap-chopped - ehivh indicates a return of irrational zuberance, which means that we're all gonna be RICH, RICH, RICH and spurt sticky gobs of moolah all over the love of our lives....CDS's and CDO's!!!

Tue, 05/01/2012 - 12:17 | 2388463 FranSix
FranSix's picture

If you let the markets decide, then you'll have negative nominal rates. Instead Operation Twist isrant to divert short-term demand into long term bonds. Ok but you're eventually going to get negative nominal rates across your entire yield curve. That will effectively destroy earnings for a very long time.

Even if you get only short-term negative nominal rates, the only performing asset will be gold and theoretically profitable gold mines with no debt and robust grades.

Tue, 05/01/2012 - 12:21 | 2388485 SheepDog-One
SheepDog-One's picture

'Let markets decide' yea Allan lets do that....shut down the computers which make 90% of all market trades, turn off the manipulation of futures and set the rates back to just 3% and see what the markets do. Im all for it, lets do it!

Tue, 05/01/2012 - 12:21 | 2388480 Centurion9.41
Centurion9.41's picture

Funny thing about the "equity market is the economy" mindset.

The TBTF financial players, because they get free money, HAVE to speculate with it since the public, so in debt, can not borrow.  Ask bankers if there's no demand or are regulations so demanding on equity that they can not lend; the answer is both.  The latter is due to the lies of the mark-to-model asset sheet.  The former is the real economy.

Uncle Ben thinks by juicing the equity markets via TBTF Monopoly money will create optimism within the populace.  Like Bush #1, he has no idea what's going on outside his TBTF club.

As the real economy and income deteriorates, Babyboomers et. al. must sell their equity paper to pay for needs.

A consumer economy so construed must further deteriorate under such conditions.

Where is ALL the growth in equities, foreign sales.  Their domestic income has flat lined; see above part about consumers.  The foreign growth is the marketing campaign to sell the equity paper to .... the long only guys who HAVE to buy equity, it's a requirement by law driven by the fund's requirements.  So, they buy.  And then turn to Wall Street's marketing machine to come up with the explaination to the retail bag holders.

Well, as the demographics continue to shift the flow of fiat will accellerate out and the only players really left will be the TBTF's balance sheet.

Hey, I have some green sh1t to sell you.  It's growing.  There's more of it. 

Ignore that guy behind the curtain printing more of it. 

This green sh1t is great.  It keeps going up.  Get it while it's still "cheap".




Tue, 05/01/2012 - 12:24 | 2388491 financial apoca...
financial apocalyptic contagion's picture

WTF is wrong with him??

had this been good old Soviet Russia, Stalin/Andropov/Gorbachev would've given him a gun and said, "hey you fucked yup old man I trust you do the right thing"

Instead he walks around like he's the fucking pope of wall street

Tue, 05/01/2012 - 12:27 | 2388499 MFL8240
MFL8240's picture

Not demented at all, he is one of the gang will say and do whatever the tribe tells him to do.

Tue, 05/01/2012 - 12:30 | 2388504 GlenD
GlenD's picture

Everyone that ate the greenspan cake yelled it tastes good, but when the plate was empty, our happiness turned to anger. We wanted to eat the cake and have it too. Nobody forced usury onto the population. We bit the apple and will pay the price.

Tue, 05/01/2012 - 12:37 | 2388523 thetruthseeker
thetruthseeker's picture

He should be put out to pasture and put down like a diseased horse, or rabid dog.

Tue, 05/01/2012 - 12:43 | 2388533 Catullus
Catullus's picture

Where can I use my TVIX as collateral for a new car purchase?

Tue, 05/01/2012 - 12:50 | 2388550 W10321303
W10321303's picture

When there are no laws and no law enforcement, the criminals keep doing whatever demented activities that they have been allowed to get away with. I'm Shocked!

Tue, 05/01/2012 - 13:23 | 2388620 lizzy36
lizzy36's picture

Someone needs to triple down on their meds.

Tue, 05/01/2012 - 13:27 | 2388631 Vince Clortho
Vince Clortho's picture

Whatever tiny speck of credibility he still had is gone.

Greenspan is the slobbering poster boy of someone who got sucked up by the Dark Side.

Time for you medication Alan.

Tue, 05/01/2012 - 14:26 | 2388817 Sandmann
Sandmann's picture

Greenspan has been senile for years and like Chauncy Gardiner the Washington CRowd hung on his every word

Tue, 05/01/2012 - 15:20 | 2388975 RabbitHole
RabbitHole's picture

Equity as defined in law means a totally different idea than in finance land. Equity is the value of a substance of which there is none currently; its all promissary notes generally which are extended by the notemaker which is the signatur (noodle that for a moment first). Greenspan I dont think was talking to finance people, though they will be listening; he's speaking to those with the legal reigns of the underlying real value (equity) to the public system, that is the private one where all the value really lies occulted as it should from your goyim consciousness! (i kid i kid)

I'm sure SOME around here are mildy entertained and aware of the dueling financial system, dubbed occult economy by some. When you factor in the Yamashita gold, the Jews gold etc...(what happened to LIBYA's btw) it seems reasonable to conclude there is smoke, so lets wait for fire.

In that vein, I think Meastro played the right tune, namely equity, the value underwriting the digits is the real collateral of the economy (BLACK GOLD!!!!!). Right now FRN's mean nothing, they are valueless. There is a gent who is trying to go to the BOSTON FED on May 26th and demand lawful money pursuant to a statute in some Act to exchange his money for the red seal, lawful constitution money which he can then turn in for gold. Probably wont happen...but I wish him well and might even join as I'm in a FED bank city...though not Boston.

Perhaps Meastro has just given the green light as he's a rather senior member of the club. He's just given the green light to tear down the old system, letting it rot, while the new one begins taking over. I don't pretend to have all the answers, but the shift is before many bankers have resigned this year? Over 600 many senior memebers of royalty have egg on their faces in the last 12 months? Why did OBAMA sign that registry at Westminster Abby using 2008 last year!!!??? How many lawsuits have been filed against the FED in the past 3 years? How many sovereign movements are happening in the country right now? Novelty is well, reaching a point of infinity no? We can PRINT manufactured parts now...sweet...oh and we rolled out a hologram technology on the DL at a CULTURAL event...please tell me I'm not the only one here noticing the blatant occult sybolism all over the Superbowl and then the grammys too!

I actually see these comments as the go ahead on MAY DAY folks...dig deeper...

ZH is the best left brain, finance site ever long as they can source material from the materium. Use the right brain a bit more and see with fresh eyes...or not.

The final analysis as Morgan Freeman speaks on BoB's first track of the new album this morning...


[Outro: Morgan Freeman]

As the mask of deception falls off the face of humanity

Unveiling the grim reality of duality

In which everyone is a casualty, no one will be exempt

Truth has many shades

It's not a matter of black and white, but gray

Although many, we are one, so in the final analysis

Could it be that we are fighting a war that can't be won?



Tue, 05/01/2012 - 16:34 | 2389248 dexter_morgan
dexter_morgan's picture

alzheimers.........or just another fucking moron like the rest of the Keynsian gods

Tue, 05/01/2012 - 19:46 | 2389625 Youri Carma
Youri Carma's picture

GREENSPAN: “Equity Stimulus”

- Greenspan (2002) “To mitigate the fallout when it occurs and, hopefully, ease the transition to the next expansion”

Also see:


The Fed Created Serial Bubbles by Policy by Henry C K Liu

Wed, 05/02/2012 - 13:29 | 2391618 macro-investing...
macro-investing-strategy's picture


I had the opportunity to briefly meet Alan Greenspan around 9 months ago. I asked him when QE3 was coming. His response was: “I am still waiting for QE1 and 2 to work”. Clearly they didn’t expect the banks to hold all the excess reserves at the Fed.

If the size of the Fed balance sheet is a political issue then a way around that is through degrading its quality e.g. swapping some of the commercial bank’s treasuries for MBS. The Fed then gets the trash on its own balance sheet, leaving the commercial banks free to lend. I suppose this is what they are planning once Operation Twist expires at the end of June; if political conditions won’t allow more balance sheet expansion.

This type of operation could have a greater impact on money supply than the Fed simply buying more treasuries- depending on its impact on the capital position of the banks.


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