Greenspans Guilt
Alan Greenspan will go on T.V. Tonight on 60 minutes to sell his book. I can hardly wait. Advance notices are saying he will admit he had no idea how bad the housing situation would get. This man's ego is the principle reason we are entering into the "Twilight Zone" of financial disaster ahead.
First of all, The "Federal Reserve" is a private corporation, and Mr. Greenspan was a private employee of that company, it has investors just like any private company. His job was too look out for them, the public is secondary.
The inside joke in the industry is "It's not Federal and there are no reserves!"
The job of controlling money was given to them after the panic in the early 1900"s when J.P. Morgan singlehandidly had to rescue the banking systme from a meltdown.
(At least that's what I have read).
I don't argue that he's a good, honest person, but his motives are questionable.
After the dot. com bubble burst, in 2003 he lowered the interest rates to only 1% to make cash available, and kept it there for over a year. This was exactly the wrong thing to do, it was EASY cash that fueled the dot com bubble in the first place. He should have let us go into recession at that time, and let the excesses work their way out of the market, but his EGO would not let that happen, no sir, not on HIS watch!! The white knight rode to the rescue, so what happened, all the HOT money went into the housing market, creating an even bigger bubble which is about to burst. Since most people own homes, and not stocks, this will have an even worse consequence for more people, and possibly the entire financial systme.
So what's the current Fed Chairman gonna do, why, lower interest rates!!! That's like giving a drunk who's got the D.T.'s a bit of the hair of the dog that bit him, it won't work, the markets are exhausted.
Besides, if they try to lower rates anymore, the dollar will collapse. Hang on folks, it's gonna be a bumpy ride!
First of all, The "Federal Reserve" is a private corporation, and Mr. Greenspan was a private employee of that company, it has investors just like any private company. His job was too look out for them, the public is secondary.
The inside joke in the industry is "It's not Federal and there are no reserves!"
The job of controlling money was given to them after the panic in the early 1900"s when J.P. Morgan singlehandidly had to rescue the banking systme from a meltdown.
(At least that's what I have read).
I don't argue that he's a good, honest person, but his motives are questionable.
After the dot. com bubble burst, in 2003 he lowered the interest rates to only 1% to make cash available, and kept it there for over a year. This was exactly the wrong thing to do, it was EASY cash that fueled the dot com bubble in the first place. He should have let us go into recession at that time, and let the excesses work their way out of the market, but his EGO would not let that happen, no sir, not on HIS watch!! The white knight rode to the rescue, so what happened, all the HOT money went into the housing market, creating an even bigger bubble which is about to burst. Since most people own homes, and not stocks, this will have an even worse consequence for more people, and possibly the entire financial systme.
So what's the current Fed Chairman gonna do, why, lower interest rates!!! That's like giving a drunk who's got the D.T.'s a bit of the hair of the dog that bit him, it won't work, the markets are exhausted.
Besides, if they try to lower rates anymore, the dollar will collapse. Hang on folks, it's gonna be a bumpy ride!
