So Greenspan KNEW what he was doing and KNEW that it was wrong and chose to act to the detriment of the country. And somehow he thought these wrong choices would preserve his popularity and glory?
Its called good PR. Greenspan has an uncanny ability to spin (or as he likes to call it Fed speak). But not to worry, before long everyone will realize that he was truly the worst central banker in history.
Good call. "You can lead a horse to water" but if you stick his head in it you'll probably get arrested for animal abuse. http://www.floodlight.org/faq/what.html
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. ### Alan Greenspan -------------------------------------------------------------------------------- This article originally appeared in a newsletter called The Objectivist published in 1966 http://www.321gold.com/editorials/bjm/greenspan_gold.html
i like the part about the bigger the loan, the more you save!!! interest only ARMs! wow!!! can 50-year I.O. ARMs be far behind... all this is based upon the persumption that real estate will appreciate faster than the loan adjusts upward (among other "beliefs"). http://www.arizonarepublic.com/business/articles/1112interestonly12.html
There seems to be a group of guys on this thread who are gold bugs and or gata supporters. Has it ever crossed your minds that you lot should be thankful for the "cabal" who manipulate the price down? Gives all the nutters a chance to fill their boots before the price goes thru the roof...... ..............it is going thru the roof is'nt it? If anyone wants to be amused have a look at www.lemetropolecafe.com its full of idiots ranting on about gold.
hehe, so you anti-greenies think he intentionally destroyed the market to make himself look good ? Good lord, wake up ! Don't drink the koolaid !
I take back all the mean things I said, Greenspan has restored my full faith and confidence today with his soothing words. In assuring us that there is "no meaningful limit" (his words) in regards to the amount of liquidity the fed can pump into the system in the event of continued slowdown, the great man shows us ign'ant folks that the crack team of fed propeller heads have somehow figured out a way to effectively print as much money as they want in the event of a real crisis while yet miraculously avoiding one o' them nasty Latin America / Weimar Germany style hyperinflation scenarios. The liquidity master who knows no bounds must have also figured out a way to keep all those friendly foreigners holding USD denominated assets from running like hell at the prospects of seeing the dollar go into freefall when all that dilutive liquidity hits the books. Me only simple caveman trader.... no understandum fancy goobergobber... me stumpum on simple concept supply and demand... maybe 2+2 not 4 after all....
Uh, no.... this should be rather obvious if you think about it for a second.... ever hold on to a losing trade in hopes it would come back, only to have the ultimate loss be that much greater? it's called making a stupid decision for some petty reason, realizing your decision was stupid too late to do anything about it, keeping your mouth shut as things get worse and worse, lamely trying to cast the blame on others when everyone finally realizes you @#%@#$ up bigtime, and then doubling down deep in the hole in a last ditch hail mary attempt to bail everyone out of your mistake... final result being everyone within radius of your screwups piled on screwups is in far worse shape than before