'Cuse Me: did wall street, and us, only hear what we wanted to hear? My cursory reading of Greenspan's comments indicate that he feels that the US has not yet fully felt the turmoil of the world's economic problems, that he expects these problems to continue and probably cause a slowdown ( is the "r" word forbidden?), and that he is inclined to lower rates to facilitate the US economy dealing with this.
This smells like slowdown and recession to me, which is exactly what the market has been telling us, starting with the precipitous decline in the transports, and then the 15-20% "Correction" in the big caps. Granted that the Fed has been masterful in managing the economy the past few years, and that this could well be a "growth recession", Mr Greenspan's words, though very carefully chosen, and the US and world market's euphoric reaction to them, is giving me much cause for alarm. I still view this rally as an opportunity to lighten up and take some profits, now that there are some again. Larry |
