Greenspan Should Learn Discretion
It wasn't a Commerce Department report, or the Chinese market, or a mere correction that sucker-punched the stock market today; it was the voice of an eighty-year-old man who holds no tangible power over what can happen with interest rates and the tinkering thereof, the Maestro, as he was titled during his reign.
Reminds me of the time I was laid-over in Denver for some reason on my way back from a business trip to Phoenix several years ago. Whether it was inclimate weather or an airline snafu, I don't recall, but I ended up sequestered in a hotel bar, as was Steve Beckner, who was covering the G8 (or was it G7 then) Summit.
At that time, I hadn't been following the Fed to any great degree, having just my little 401(k), about which I wasn't nearly as obsessive as I am about these things today. So, thirsty for knowledge as always, I let Beckner go on about the marvels of Alan Greenspan (Beckner authored Back from the Brink: the Greenspan Years) and immediately became hooked on the machinations of the Federal Reserve. We talked into the wee hours -- where were we going to go? -- Beckner also sharing, or so he said, my libertarian bent (if I had a nickel for every time I've been fed THAT line . . .). Not a modest man, he laid claim to "The Beckner Effect" on Wall Street, though I have to admit, despite trading a few emails, I haven't followed his career much since then.
That was my baptism into the Greatness of Greenspan. My self-indulgent tale aside, said Maestro should take a little more care with what he says and how he says it. The world remains remarkably sensitive to his every breath, not necessarily with the optimum effect. (Could it be that the market dive in China was also his fault?)
UPDATE 2/28/07: The WSJ today essentially reiterates my point, though it should be noted that I beat them to publication.
UPDATE 3/3/07: That Greenspan precipitated the Chinese dive is backed up by Financial Times which states, "The flight from risky investments . . . began on Tuesday when Chinese stock markets fell 9 per cent amid concerns over the health of the US economy . . ."
Reminds me of the time I was laid-over in Denver for some reason on my way back from a business trip to Phoenix several years ago. Whether it was inclimate weather or an airline snafu, I don't recall, but I ended up sequestered in a hotel bar, as was Steve Beckner, who was covering the G8 (or was it G7 then) Summit.
At that time, I hadn't been following the Fed to any great degree, having just my little 401(k), about which I wasn't nearly as obsessive as I am about these things today. So, thirsty for knowledge as always, I let Beckner go on about the marvels of Alan Greenspan (Beckner authored Back from the Brink: the Greenspan Years) and immediately became hooked on the machinations of the Federal Reserve. We talked into the wee hours -- where were we going to go? -- Beckner also sharing, or so he said, my libertarian bent (if I had a nickel for every time I've been fed THAT line . . .). Not a modest man, he laid claim to "The Beckner Effect" on Wall Street, though I have to admit, despite trading a few emails, I haven't followed his career much since then.
That was my baptism into the Greatness of Greenspan. My self-indulgent tale aside, said Maestro should take a little more care with what he says and how he says it. The world remains remarkably sensitive to his every breath, not necessarily with the optimum effect. (Could it be that the market dive in China was also his fault?)
UPDATE 2/28/07: The WSJ today essentially reiterates my point, though it should be noted that I beat them to publication.
UPDATE 3/3/07: That Greenspan precipitated the Chinese dive is backed up by Financial Times which states, "The flight from risky investments . . . began on Tuesday when Chinese stock markets fell 9 per cent amid concerns over the health of the US economy . . ."
posted by Scribbler de Stebbing | 2/27/2007 08:23:00 PM
My take on the market is that people have been looking for an excuse to sell for sometime. SOme major terrorist attack, some nasty economic news, etc... nothing has occurred. They finally got it today.
It's interesting that anyone would care anymore about Greenspan's opinions. Sure he has an opinion, but there is nothing he can do about it. Besides, predicting that growth will slow is like predicting nothing and everything.
The better question to ask Greenspan is whether he knew that Vallarie Plame worked for the CIA. His wife said she knew (but later took it back).
Here I thought everyone is getting out of the market because they need to have cash to pay for all of the tax hikes the Democrats are proposing and passing..
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