Greenspan the Master.

Quote from jamis359:

I don't understand the defense of Greenspan, nor do I understand the idea that he somehow created wealth in the U.S.

The only thing Greenspan is directly responsible for are short-term rates, and that's exactly what he mismanaged. Taking short-term rates down from 6% in late 2000 to 0.8% in 2003 was way too far, too fast. It ignited a massive debt bubble -- mortgage debt, corporate debt, and got Americans out of the habit of saving.

The 'wealth' created by the real estate boom is largely a mirage for many people. Equity only translates to wealth if you can actually liquidate at the inflated price and your new dwelling costs less than what you just sold.

I feel sorry for Bernanke -- he's gotta deal with Greenie's messes!
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Corporate debt is actually down. Coupled with us Chinese buying t-bonds enmasse that's why long term interest rates are low.
Bad assumption, sorry.
 
hairdresser

I think you don't know what you are talking about. Greenspan the maestro ? wake up ! the guy has had as inflated a reputation as the bubbles he created. He has played the apprentice sorcerer with the economy. Are Americans better off ? not so sure...
It was a great ride for speculators of all sorts but the gap between the haves and the have nots has done nothing but widening thanks in part to Alan Greenspan. The guy's constant and only concern about wage inflation when everything else is going up but nonchalance in front of an outrageous housing bubble he single handedly created just disgusts me. It's about time for him to go, he commanded way too much influence and respect. I think it will be different with a lower profile Bernanke. It's not good for the Fed to be a one man show , also they should go after one or two terms.
 
Quote from Ivanovich:

Cheers, Pabst. Take up the fight, my friend. I give up on this guy.
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You shouldn't! Study my arguments & study the longer term charts for gold and the $-index! Maybe you and your friend Pabst ultimately will start to grasp that something is wrong, seriously wrong!
 
Quote from hairdresser:

This guy has created more wealth for America than all other Fed Governers combinged.

Now he is manufacturing the perfect soft-landing for the housing markets.
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i wouldn't say perfect. if its soft he can count himself lucky that certain events don't occur.

techs crashed in 2000, solution create another bubble for a soft landing. now they overshoot on rate hikes and will have to drop rates when growth slows late in the year. but wait, a dropping dollar could complicate matters...

leading to a crash
 
Quote from hairdresser:

gold has no intrinsic value and doesnt pay dividends.
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this isn't a very smart comment. gold has more value than any currency. when currencies turn to toilet paper gold will be standing tall and proud

in times of crisis gold will always be there.
 
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