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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (72359)	12/15/2007 2:39:31 PM
From: Sea Otter	Read Replies (1) \| Respond to of 116555

Another AG quote: "Indeed ... somebody who has an immune system which is not working very well is subject to all sorts of diseases, and the economy at this level of growth is subject to all sorts of potential shocks." So our basic problem is just a malfunctioning global immune system. I feel better now.

To: Steve Lokness who wrote (72359)	12/15/2007 5:33:56 PM
From: Tommaso	Read Replies (1) \| Respond to of 116555

>>>But Greenspan was at the front of the parade marching with his "buy housing now" banner flying high and encouraging people to take out adjustable rate mortgages so they could participate in the bubble. Geesh, now he says he had no part in the bubble. His role in this is clear.<<< And he still has so much influence that the Fed is taking actions as if he had never retired. At least some economists of recognized stature are speaking up. Such as Allan Meltzer, although his recent adverse comments are strangely hard to locate on the net.

To: Steve Lokness who wrote (72359)	12/15/2007 5:36:42 PM
From: Tommaso	Read Replies (2) \| Respond to of 116555

Found it: Meltzer's Outlook ``We should still see reasonable sales growth and no recession,'' Meltzer, also a Fed historian, said in a telephone interview after the report. ``It's quite reasonable to expect high energy prices will slow business investment and, eventually, consumer spending, but people are working, the unemployment rate is low and Christmas is Christmas.'' Greenspan defended his record as a policy maker in a Wall Street Journal editorial on Dec. 12, saying that lowering the Fed's target interest rate to 1 percent in 2003 didn't have a major impact on demand for homes with adjustable-rate mortgages. Meltzer said later the same day that the former chairman ``lets himself off much too easy.'' Rising foreclosures triggered a collapse in demand for assets backed by U.S. subprime mortgages that roiled markets from Sydney to New York the past four months. The credit squeeze that followed forced the Fed, now led by Ben S. Bernanke, to reduce interest rates and join central banks in Europe to pump billions of dollars into the banking system. http://bloomberg.com/apps/news?pid=20602081&sid=aGyhKOCi4xdU&refer=benchmark_currency_rates