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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (181033)	7/18/2002 7:46:07 AM
From: Les H	Read Replies (3) \| Respond to of 436258

As for Greenspan, it is clear that he knew that the stock market was in a bubble phase, way back in December 1996, when the Dow was at 6,437, and did nothing about it. Why he did nothing is still a mystery, although the seductive effect of spurious late '90s productivity statistics clearly played a part in his error, since he is still ballyhooing them, like an Enron shareholder who can't believe Andrew Fastow turned out to be a crook. It is not fair, though, to blame Greenspan entirely for the current unpleasantness, however inevitable it was once he inflated the money supply and allowed the stock market to roar out of control. After all, then-Treasury Secretary Robert Rubin was the former chief executive officer of Goldman Sachs, and his successor Larry Summers was held to be the brightest economist of his generation. While it is unlikely that the current Treasury Secretary Paul O'Neill knew the stock market was in bubble mode in 1997-2000, and in any case he had no responsibility for the bubble beyond cashing in a profit from his excessive stock options at Alcoa, it is hard to believe that Rubin and Summers were equally ignorant, even at the time. They were, however, part of the Clinton administration, with its noted ethical failings, so maybe they had simply figured out that the bubble could be extended to last out Clinton's time, with the inevitable collapse falling on the next president, either a Republican or the unfortunate but unlikable Al Gore. It would be interesting, but probably impossible, to find out how much they knew -- or suspected. The current incumbents, President George W. Bush and Secretary O'Neill, are so far only marginally to blame for the ongoing unpleasantness, although their public spending addiction and protectionist failings will bear a larger share of blame for the nastiness that is yet to come. As they are roasted by a Democratic Congress and a vengeful public for the failings of others, they should at least relieve their feelings by removing one malefactor who genuinely bears a large part of the responsibility for the troubles we're all going through. Mr. President, fire Greenspan, or at least call for his resignation. You know it makes sense. full article at interestalert.com