Is Al Greenspan on Crack or Just Messing With Us

M.D. Holloway · 09-28-2005, 03:53 PM

Greenspan stated “History cautions that extended periods of low concern about credit risk have invariably been followed by reversal with an attendant fall in the prices of risky assets.”

WTF? Come on Al, give us a break. The trending towards equilibration within certain sectors is predominated by an influx of tempered numerations and not the asset price drop. Any fool can see that the market exuberance is juxtaposed to speculative buying based on chosen and time-tested spur parameters not blind jubilations.

The market dynamics Al suggests is merely a smokescreen and in some cases a scapegoat, a red herring, a boon-doogle! Reflection on the “froth” he declares is nothing less then the zero-sum which only becomes impassive when speculative indexes offset by an deregulation and sector bias play to the foundations that set the pace for measured growth and stability. Hay Al, thanks for the laugh!

Discuss…

turbocarrera · 09-28-2005, 04:26 PM

Sounds like something Friedman would say. You can't trust right-wing economists - they don't have subtraction keys on their calculators.

Dixie · Dixie's Garage

"History cautions that extended periods of low concern about credit risk have invariably been followed by reversal with an attendant fall in the prices of risky assets"

Translation:

"The housing bubble in California, Florida, and a few other georaphic areas, is fixin' to bite a bunch of people in the ass..."

Steeve · 09-28-2005, 04:31 PM

His statement follows basic economic theory to a "T." I guess I would need to see the entire speech to see the part that you are disputing. Can you post a link for me?

alf · 09-28-2005, 04:34 PM

Quote:

Originally posted by LubeMaster77
The trending towards equilibration within certain sectors is predominated by an influx of tempered numerations and not the asset price drop. Any fool can see that the market exuberance is juxtaposed to speculative buying based on chosen and time-tested spur parameters not blind jubilations.

ummm actually i undoubabably do not get what you are saying.

tabs · 09-28-2005, 04:36 PM

!

on-ramp · 09-28-2005, 04:42 PM

Al Greenspan is the devil

Jims5543 · 09-28-2005, 05:27 PM

Quote:

Originally posted by Capt. Carrera
"History cautions that extended periods of low concern about credit risk have invariably been followed by reversal with an attendant fall in the prices of risky assets"

Translation:

"The housing bubble in California, Florida, and a few other georaphic areas, is fixin' to bite a bunch of people in the ass..."

Florida checking in.

I pulled out of my investment house and decided to sit tight and just rake it in while I can with my land surveying company. I feel lijke Allen might be on to something. The question is WHEN?

Mortgage is paid off and I have ZERO debt. I am ready for a recession and I have been planing for one for over a year now.

Allen might be right. I am not about to gamble 100's of thousands trying to prove him wrong.

At this point in my life I can get by just fin flipping burgers for a living.

Want fries with that?

Jims5543 · 09-28-2005, 05:33 PM

Excuse me I have about 48 ounces of Steel Reserve in me.

I agree 100% with Allen. I look around Port St. Lucie, Florida ( I refuse to live there but will rake in the cash from idiots willing to move there) and wonder out loud how ANYONE in their right mind would pay 100K for an 80x100 piece of land. This city is a joke, no infacstructure, no entertainment, no parks to speak of, NOTHING!! Its a town of nothing yet, everyone is willing to dole out 100K for a 1/4 acre lot here. Either I am loosing my mind and do not see the attraction or these people are lemmings.

dhoward · dhoward's Garage

Quote:

Originally posted by Jim Cesiro
Excuse me I have about 48 ounces of Steel Reserve in me.

I agree 100% with Allen. I look around Port St. Lucie, Florida ( I refuse to live there but will rake in the cash from idiots willing to move there) and wonder out loud how ANYONE in their right mind would pay 100K for an 80x100 piece of land. This city is a joke, no infacstructure, no entertainment, no parks to speak of, NOTHING!! Its a town of nothing yet, everyone is willing to dole out 100K for a 1/4 acre lot here. Either I am loosing my mind and do not see the attraction or these people are lemmings.

Isn't that where MADD started?

turbo6bar · 09-28-2005, 06:24 PM

The only thing that scares me a little is the correction in Fannie Mae after more reports of accounting regularities emerged. FNM stock lost over 10% today on huge volume. FNM holds 2 trillion dollars in debt. A troubled corporation with that many negative dollar signs makes my tummy uneasy.

M.D. Holloway · 09-28-2005, 06:28 PM

Quote:

Originally posted by alf
ummm actually i undoubabably do not get what you are saying.

Your not alone, I don't get WTF I'm saying either! Nor do I think anybody really gets what the heack this A$$ Greenspan is saying!

Sure, maybe he is a genius when it comes to the bucks but unless you can convey your message in a cohesive and understandable manner, you are a putz.

I'm not saying you have to dumb it down to 4th grade level but lets get it so at least 50% of Americans get the point.

I'm I the only guy that thinks this guy is a bag of wind?

BlueSkyJaunte · 09-28-2005, 06:57 PM

The Motley Fool radio show (on NPR) has a weekly call-in game where people have to translate WTF Greenspan is babbling on about.

You're not the only one.

alf · 09-28-2005, 06:59 PM

Quote:

Originally posted by LubeMaster77
Your not alone, I don't get WTF I'm saying either! Nor do I think anybody really gets what the heack this A$$ Greenspan is saying!

Right, I had to read it twice to get what AG was saying, reading just that sentence. But i give him kudos for saying alot in very few words. Taken in context of his whole speech, it was much easier to dig.

It is what Capt Carrera said.

M.D. Holloway · 09-28-2005, 07:38 PM

I bet he has bad breath too!

alf · 09-28-2005, 08:18 PM

Actually, i think that the guy is an excellent Fed Chairman, we are fortunate to have him. Keep in mind what the charter of the Fed is when you judge him.

Steeve · 09-28-2005, 08:52 PM

Quote:

Originally posted by SoCal911SC
Alan Greenspan is the Bubble Master.

That's been his claim to fame. His big economy under Clinton was the tech bubble, under Bush it's the housing bubble.

Both provide huge GDP growth and a "fake" economy. Both come crashing down. And in both he only makes veiled "no, please stop (wink wink)" type remarks supposedly aimed at preventing the bubbles.

Ok, sorry, but I have to point out what an idiotic statement this is. Our economy has been thriving or at the low points stable since his appointment by Reagan. He was appointed in 1987. How does anyone see his only claim to fame as being under Clinton or W.? Are you really that stupid? I don't think so, or else you wouldn't be able to figure out how to work the computer.

Greenspan is the only reason our economy was able to survive a completely inept president like Clinton. I promise you he understands how our economy works better than anyone else on this board, including me.

And to help you a bit, a large part of his genius is his ability to influence the financial markets with his statements and opinions, rather than by changing fiscal policy. He has many tools available to him to stabilize our economy, yet his preference is to utilize public opinion rather than government intervention to achieve his goals.

Most are too simple or simply untrained to understand his tactics. Let me know and I will be glad to perform some rudimentary economics lessons.

87coupe · 87coupe's Garage

Spot on Steeve.

jorian · 09-28-2005, 09:28 PM

Greenspans' inevitable retirement is going to leave some very large shoes to fill. Alot of people, not just in the US (myself included), have benefited greatly under his stewardship.

Don Ro · 09-28-2005, 09:46 PM

Quote:

Originally posted by Steeve
Most are too simple or simply untrained to understand his tactics. Let me know and I will be glad to perform some rudimentary economics lessons.

Simple and untrained here.
I like what you said...I can see that.
But whatever is just below "rudimentary"...make it that way, please.

I listen to some who mock his moniker as "The Maestro"...and I subscribe to that (Bob Brinker, for example). Then I read what you wrote, and I can see that. When I hear financial folks speak about this economy, I don't know if it's the truth because, as with most things in life, whatever information I hear is coming from agenda. Sooooo, fire away...take yer shot.
.
I do wish the man would speak plain old dog-***** English, though.