It’s NOT Greenspan’s fault folks !
Question: Alan Greenspan has nothing to do with the present economic situation folks. Anyon who tells you otherwise is full of it.
It’s the consumer who’s at fault. Joe and Jane Q Public have been buying stuff on credit like drunken sailors for over 2 Years. (and this on top of car loans, student loans and $100K+ mortgage debt!) What you are seeing is a CONTRACTION of business and economy, plain and simple.
Now look out, Joe and Jane for the most part are in *way past* their heads, and the spectre of layoffs are here and REAL. What happens now? Those wallets and purses slam SHUT and the whole thing snowballs. The FED can cut rates down to 1.0% in my opinion and it won’t make a hill of beans or a pimple on a (Republican?) elephant’s rear end.
Watch as this upcomming holiday shopping season is the worst in many many years. Those $300.00 rebate checks from GWB will either go to pay bills, buy booze to get drunk with, or a bit of both – when are my friends on CNBC at 5:00 going to admit this…grin?
The farm has been mortgaged, the rent is due, the corn was destroyed from a hailstorm a hour ago and the barn burned down yesterday…capeish ??
Answer: First of all why would there be a Middle East war ? Is anyone on the Arab side rambunctiously robust enough to challenge Israel ? No. If the consumer is fully ” tapped out ” then why did the Fed have to raise rates 6 times ? Just to quall the capital market speculation ? Maybe and based on that maybe the Fed tightened. Was there inflationary pressures showing up in the CPI & PPI ? No. But the Fed tightened because Greenspan believes that the Fed must move in anticipation of inflationary pressures. That is why the Fed acted. The Fed is arrogant enough to think it can act based on beliefs not facts. The Fed is to blame here. My example was not intended to equate consumers with children. If it had been, “I gave them all the candy they wanted” would have been “I gave them candy after they begged me for it,” and “made sure to black out the nutrition facts” would have been “they ignored the nutrition facts.”
My point was to show that when you lie to someone (candy is good for you! credit is really cheap!), it’s foolish to be shocked when they believe you.
Related Posts
Filed under: School Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.