Et tu, Greenspan?
Morning Richard,
At the risk of raising your blood pressure < g >, here is Fiendbear's commentary for today:
<< If Prudence could talk, those would have been its last words after Alan Greenspan's testimony before the U.S. Senate budget committee on Thursday.
"You wouldn't get the hype working if there weren't something fundamentally potentially sound under it," said Greenspan.
I'm not going to get into it right now, but this is about the dumbest thing I've heard from Greenspan. Using this logic, you could justify the zany prices of anything between Dutch Tulips and the more recent Beanie Babies.
As I see it, Greenspan is probably still smarting from all of the negative press that he received following his famous "irrational exuberance" comments over two years ago when the Dow traded in the 6,000s.
To compensate for his open attack on President Clinton's plan to put social security funds into stocks, Greenspan only allowed himself to make neutral comments on what will turn out to be the most speculative sector in history.
His neutral comments were of course perceived as the green light for investors to continue to buy up Internet stocks (and tech stocks in general) without any regard to valuation or even common sense. The Nasdaq shot up to a new all time high just under 2,500 but most stocks in the index have been hurting months with their pain masked by a handful of large cap legends. >>
The real question is ... When all this is over, and the bullsh*t has risen to the level of the fan, will the Federal Reserve survive Alan Greenspan?
fiendbear.com
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