OT:Centaur Fund's Negrych Comments on Greenspan Senate Testimony
New York, March 7 (Bloomberg) -- Comments by Colin Negrych, manager of the Centaur Fund in New York, on today's testimony by Federal Reserve Chairman Alan Greenspan to the Senate Banking Committee:
``Mark my words: the massive monetary and rhetorical campaign by politicians, especially the Fed, to prop up the stock market and housing bubbles while causing long-term interest rates to rise. .. will be looked back on as one of the most galactically stupid economic/monetary policy prescriptions in U.S. history,'' Negrych said.
``The powers that be should have let the stock market normalize to sustainable levels -- about 50 percent lower than current levels -- and let long-term interest rates fall, to provide the most widespread and efficient injection of stimulus possible to households and corporations,'' he said. ``Instead, they have reignited rampant speculation with excessive liquidity, produced the most ridiculous valuations in history, and encouraged
unprecedented levels of leverage. Time will tell all. ``You might imagine that with nothing but great economic news, the declaration of recovery from no less a visionary than Alan Greenspan, widespread optimistic earnings announcements and analyst forecasts, and a $51 billion stimulus bill having just been passed, that stocks might be up on the day. Nope. ``All this good news, and three times more, has been priced
into stocks. They are bloated, and ready to spill their guts.''
Colin: repent! repent! the end of foolish bears draws nigh! |
