Even Greenspan Knows We’re Screwed


In case you missed it, Alan Greenspan just set a new world record for hypocrisy stating that the Fed’s stimulus has had little impact on the US economy.


As a brief reminder, it was Alan Greenspan who created both the Tech and the Housing bubbles by maintaining loose money policies. It was also Greenspan who helped Wall Street to dismantle regulation related derivatives, leverage, and more.


Put another way… pretty much every single problem with the financial system today was created or at least greatly aided by Alan Greespan and his policies. And if you think Greenspan was just an ignorant dupe, you should consider that as early as 1999 he stated in private that derivatives could “implode” the market.


So to see Greenspan now criticizing Bernanke’s moves is beyond astounding. Don’t get me wrong, I’m not in any way defending Bernanke. I’m just saying that it’s odd to see Greenspan criticizing someone who did the EXACT same things Greenspan himself did.


Regardless, Greenspan’s statements (he also said Greece will default) tell us quite a few things about the Fed:


1)   The Fed is a political entity and as such politics, not economics or finance determine its decisions

2)   The Fed is aware that it is incompetent but is beholden to the Wall Street banks


Regarding #1, Greenspan’s sudden move to start stating the obvious, after years of presenting rambling nonsense defending Wall Street, reveals in plain terms that those who run the Fed are essentially political lackeys who operate on behalf of Wall Street.  They are not regulators, nor are they actual policy makers. They are politicians who act as front men for the big banks, presenting a friendly face for Wall Street’s rampant greed and corruption.


Which brings us to point #2, for Greenspan to note that the Fed’s actions have accomplished next to nothing makes it clear, beyond any doubt, that those at the Fed are aware that their policies are futile. Bernanke himself has even hinted at this in a recent press conference in which he stated that the Fed didn’t understand why the economy wasn’t improving.


The take home point with all of this is that the Fed is in fact powerless to address, let alone fix, the Financial Crisis that began in 2007. Indeed, the Fed’s key role in creating it was to let Wall Street dictate the Fed’s moves. And now that the Fed is supposed to solve the Financial Crisis, we’re finding out not only do they have no clue how to do it, but they’re even aware of this fact.


Which brings me to my final point: the Financial Crisis of 2008 is NOT over. In fact, that whole disaster was just a warm up for what’s coming down the pike. Indeed, the Fed is fully aware that it hasn’t solved anything. All it’s done is print money, which has made the Financial System MORE leveraged than it was during the Tech bubble and created inflation in food and energy prices.


Folks, when your answer to a problem is to aggressively pursue the same actions that created the problem there’s only one thing that will come out of it…




If you’ve not taken steps to prepare for the coming Crisis, you can download my FREE report devoted to showing in painstaking detail how to protect yourself and your portfolio from the coming ROUND TWO of the Financial Crisis (round one wiped out $11 TRILLION in wealth).


I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own, which to avoid, and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).


Again, this is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com and click on FREE REPORTS.


Good Investing!


Graham Summers


PS. We also offer a FREE Special Report on the inflation situation in the US. This other FREE Special Report, The Inflationary Disaster explains not only why inflation is here now, why the Fed is powerless to stop it, and three investments that absolutely EXPLODE as a result of this.


All in all its 14 pages contain a literal treasure trove of information on how to take steps to prepare AND profit from what’s to come. And it’s all 100% FREE.


To pick up your copy today, go to http://www.gainspainscapital.com and click on FREE REPORTS.







No comments yet! Be the first to add yours.