I am not going whole hog bear here but I did think this article was well written and said it like it is. I found it over on the gold thread and believe it worthy of posting here. I haven't downloaded my data yet so no real opinion if we should bounce yet or not.
>On Mr. Bubble Himself:
Mr. Greenspan and His Bubble July 25th, 1999
By Professor von Braun
The Rocket School of Economics
One can only be truly amazed by the performance of Mr. Alan Greenspan during the presentation of his address to Congress this week. Where we watching something that was actually taking place or was this a rerun of an early episode of “The Days of Our Lives” ? Perhaps it was “Mr. Magoo goes to Congress.”
First of all, Mr. Greenspan would have us believe that he (this is the Chairman of the Federal reserve we are talking about) still does not know if the US stockmarket is a bubble or not. Well excuse me Mr. Greenspan, but please, give us all a break. IT'S A BUBBLE!
We suspect that the intelligent investors that he is referring to, with an alarming degree of frequency we might add, do not know what is going on here. All they are doing is listening to their advisors, whether they be stockbrokers, mutual fund managers, internet chat rooms, CNBC “hotshots”, who cares? A growing number of these “intelligent investors” are “day traders” who we suspect fall under the category of the blind led by the blind. Needless to say, they (rightly or wrongly) all are all relying on you, Mr Greenspan, the bubble maker (and preserver), to keep this game going. So for a starter, we would strongly suggest that you don't rely on them for clues as to how to manage Federal Reserve monetary policy. I mean really, from their point of view, it is your bubble, not theirs.
To even imply that they know what they are doing is simply amazing, since this would be the first time ever in history that they, the last ones to get aboard the gravy train, have ever been right and that is certainly not the case now.
In fact it sounds more and more like that what you, with your famous double speak, are telling us “intelligent” investors, is that you know that your monetary policy has indeed backfired and at the best, you will pass the blame for a collapse of not just the US stockmarket, but the US $, US treasuries, all US corporate debt, and a resultant massive decline in confidence, off to these poor half brained, untrained, intelligent investors that you said could not be wrong.
What a sham!. They are expecting you to keep the game going forever. They base this expectation upon your past performances of rescuing them in the “tight” situations you refer to.
There is such a thing as “intelligent investors” Mr. Greenspan and pleased be assured that of the ones we know, you are scaring the pants off them. Never have they expected to see such a mind boggling performance as yours. From yes to no in 20 seconds flat! From irrational exuberance to flat out bubble economics. What happened ?
China steals most of the US's military secrets, the IMF goes berserk with its “lend anybody money” policy, Japan completely screws its largest pension fund, you create one of the greatest stockmarket bubbles the world has ever seen and you plan to blame the “intelligent investors”? Wait just a minute here!
I suspect you know what you have done and deep down you know it will be many, many years, before the full effects of your screw up will be repaired. In between times, those intelligent investors you refer to will be after your derriere. That is providing they can afford to look for it.
The real intelligent investors you will find are now about to march with their feet, en masse I might add, commencing now, and these intelligent investors are a somewhat different breed from the ones you appear to be referring to.
If you cannot recognize what you have done, the “real” intelligent investor can, and the evidence of this, which, if you were paying attention to anything other than your own double- dutch ramblings, is now beginning to appear for all to see.
Do not plan on any late Summers vacations, nor plan on an Indian Summers revival working. And yes, give it one more go. The market is waiting for your last ditch attempt to, once again, prop up this bubble, the bubble you apparently can't even see and go after your errant policy like there is no tomorrow.
Just make sure you that you can live with the results because they, the real intelligent investors, do not favor your apparent policy of “yes dear, I can fix it”. Nor will the market let you shift the blame.
Professor von Braun can be contacted by electronic mail at profvonb@aol.com
fiendbear.com
Good Luck,
Lee |
