Scott, the Greenspan "recession" was not caused because he's been too tight w/money the last year and half, its because he was too loose with money from 95-00...This house of cards was going to crash for a long time, we just delayed it, that's all.
That extra money was invested in all sorts of stupid ideas (dot. com) that never would have seen in the light of day in a rational market. Now money down a drain.
It gets worse. "Old-old" companies got snookered into the event by thinking these "new-new" companies were going to survive, and create permanent demand. So the "old-old" overbuilt capacity as well. And that was misallocated capital.
And all of this has nothing to do w/the average American who can't save, and thinks having a job, home, car, fancy cell-phone is a right, regardless if they can afford it. That dude's gonna get crushed before this is over, and its about time our country went back to old rational ways of thinking. I can't blame Greenspan for that. College kids without a job and 20k credit card balances, and adults tapping out their equity lines of credit for vacation binges in Jamaica are just as much to blame as the dot.com waste. IMO.
Don't take this the wrong way, but I've noticed you like (via articles) to blame Greenspan, blame CNBC, blame this and that.....but it is much deeper than that...those of us (I was one too) that invested in tech at one time...well, we deserved our money taken away. Its called respect for risk. You (we) had to learn it for a rational market to function (but as we know, the market simply wasn't rational for years, and still isn't there yet).
I actually have less sympathy for guys like you and me. We studied this stuff. We should know/should've known better. J6P...that person who busts their a$$, and, unfortunately doesn't have time and/or acumen to understand this stuff....Yeah, I do feel sorry for that cat.
So, good luck to you. But I would ask you to think beyond the "pat" answers that are trotted out in mainstream media. I think it goes much deeper than that. |
