Should Greenspan just STFU?

Discussion in 'Wall St. News' started by a529612, Mar 15, 2007.

Should Greenspan just STFU and get on with his retirement?

  1. Yes

    52 vote(s)
  2. No

    41 vote(s)
  1. March 15 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said he expects the fallout from subprime-mortgage defaults to spread to other parts of the economy, especially if home prices decline.

    ``If prices go down, we will have problems -- problems in the sense of spillover to other areas,'' Greenspan said in remarks to the Futures Industry Association meeting in Boca Raton, Florida today. While he hasn't seen such spreading yet, ``I expect to.''

    Subprime borrowers, or those with poor or limited credit histories, are increasingly defaulting after looser lending standards allowed them to take on more debt than they could afford. Last month, Greenspan told an audience in Toronto that ``disarray'' in the subprime mortgage market isn't likely to create greater financial instability in the rest of the economy.

    ``It is not a small issue,'' Greenspan said today. ``If we could wave a wand and prices go up 10 percent, the subprime mortgage problem would disappear.''
  2. I don't see why.

    He's probably one of the few unfettered voices out there right now.

    It's not really like shouting fire in a theater as those who can't afford to pay their mortgages aren't going to be any more able to do so due to his statements or lack thereof.

    The only group that might "panic" would be those who have some equity or slightly negative equity in investment properties and see this as a good time to get out. Personally, I think most of that crowd exited last summer. In my area we are looking at 5%-10% y/y declines in selling prices right now. It might get worse this year but I doubt it. The market isn't that unstable.

    On the other hand, if congress is going to do something substantial it's probably best to do it sooner rather than later.
  3. no .why? he just tells how it is and if you want to live in dreams time to wake up is NOW
  4. Pekelo


    He doesn't have to shut up, but he sure could time his speeches better, like Saturday afternoons or so...
  5. nkhoi

    nkhoi Moderator

    it's all part of the plan to prepare you for thing to come, sort of crowd control technique.
  6. Agree.
  7. ROTF:D

    Al's a snappy dresser too.:p
  8. I think Greenspan should frankly be muzzled and put in jail for deliberately letting his ego get in the way and attempt to undermine and buck Bernanke's attempts to take control of our economy. There should be a rule that EX FED Chairmen quietly fade away for a few years after they retire or leave the position to give time for others to develop their reputations and invoke policy. There is just too much at stake.

    I for one am sick to my stomach of losing large number of dollars in the derivatives markets anytime this irresponsible jack ass opens his mouth to bust all the technical trends. Every time the man so much as farts millions of people all over the world panic and make others instantly lose hundreds of billions of dollars in collective net worth. It's great for the treasury though since it forces a capital gains liquidation and tax. I think the man is doing it on purpose. He tried the same BS again today in S. FL.

    What is so crazy though is that man's track record is abysmal. I don't believe he has called a single recession properly - ever. All he managed to do was hold interest rates high at a time the country was recovering from economic calamity and managed to drive us into his own incompetently manufactured recession. The man is a NUSANCE and needs to be muzzled or officially censored. Personally I'd like to see him in prison for what he did to a lot of people's portfolio's and net worth recently. He knew exactly what he was doing. It all comes down to plain old hubris, pride and wanting to make himself still feel relevant.

    Old Fed Chairmen never die - they just smell that way. Phew! Bring the old tom-cat and bury this stinker in the litter box...

  9. You are bearish?

    I am incredibly bearish right now.
  10. Alan Greenspan is said to have earned more money from giving speeches (well into 6 figures a pop -- ain't supply / demand a beautiful thing?) in his first 6 weeks out of office than in his entire 18-year career at the Fed (ending at $180,000 a year). At the rate he's going, he may well break, before too long, Bill Clinton's estimated $40 Million take on the global speech circuit over the past 6 years. Of course, that's a moving target in itself. Aah, those selfless public servants, toiling in obscurity while sacrificing their families' financial security for years and years...

    Plus, the Mad Hatter's next book "The Age of Turbulence: Adventures in a New World" is due out in September and he can use some serious buzz, given his reported $8,500,000 advance.

    With all that in mind, it's probably somewhat unlikely that the Chairman will decide to chuck it all and take up beekeeping anytime soon.
    #10     Mar 15, 2007