Reflections

Greenspan – The U.S. Economy Is In Pause Mode; Stocks Will Lead The Way

Posted by on Jul 1, 2010 | 10 Comments

Alan Greenspan, the man who admitted he didn’t see the prime mortgage crisis coming, now has a new theory. He believes that the economy is on hold and will be controlled by the performance of the stock market. The stock market must be taking its own pause since it has dropped by some 10% during the past quarter, the biggest drop since 2008.  Consumer confidence levels have also dropped according to a report on NBC news last evening.

According to one news article Alan Greenspan was quoted as saying:

“While ordinarily we’re seeing the stock market driven by economic events, I think it’s more the reverse,”Greenspan said in an interview today on CNBC. “What we do know is stock prices are a leading indicator.”

Oh goody. Our entire economic system is dependent on Wall Street! Tomorrow I am going to alter my personal economic forecast and buy more gold and silver. Thanks Mr. Greenspan for the heads up.

Comments welcome.

Source

  • http://wp3.lockergnome.com/nexus/theoracle/ the oracle

    Economists – can’t get any three to agree on something, can’t legally shoot them.

    What to do.

    Greenspan was off the mark all along, because his predictions for each turn were wrong. He was simply lucky enough to have ridden the tide of good times long enough to establish a reputation. He, like any other economist, really never had a clue. They all are thinking that they are working in a closed system, and they are not, therefore, any of their prognostications are no better than those that might be given by Homer Simpson.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Homer Simpson might be an improvement!

      Have a great weekend.

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  • http://bob3160.googlepages.com/ bob3160

    Alan is right!
    Some one is holding our economy by the balls and is trying to squeeze every last nickel out of it.
    The problem is, our economy isn’t even worth a red cent.
    Until we put our people back to work doing meaningful jobs, the economy is going to continue spiraling in the wrong direction.
    Mr “Bail Out Greenspan” and the rest of his know nothing crew should all go back to school and study economics 101.
    Bailing out the rich at the expense of the poor isn’t my philosophy of curing anything.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Hi Bob,
      I agree. Have a great 4th !

  • Cliffystones

    “Bob3160″ hit the nail on the head. “Meaningful jobs” is precisely what are needed.

    I remember a segment on 60 Minutes back in the early 1980s where the “expert” was saying if we keep exporting and outsourcing all of our productive jobs, that someday we would all be sitting around selling each other insurance!

    Well, “someday” is here folks, and it ain’t pretty. In my more than 30 year working career I have seen folks at all levels of the employment scale who are continually trying to come up with ways to make the most money while doing the least “productive work” possible. Not everyone of course. But putting middle managers between middle managers with administrators and assistant to the assistant administrators, consultants that come in and charge premium dollars to tell you what a 3rd grader could, you get the idea.

    When did so many Americans start to feel so privileged that they won’t stoop to doing the work their parents and grandparents did? I grew up in LA in the 1960s. There were steel mills, copper mills, glass factories, car factories, etc. Now all of that has been shipped over seas for slave labor to preform.

    When Americans (Greenspan included) come to the obvious realization that the money we hold is only as valuable as the “work” we do to earn it, maybe things will start to turn around. This economy isn’t controlled by wall street, but by the folks who wake up in the morning, put their pants on one leg at a time, and have something to show for it at the end of the day. Mr. Greenspan has just proved by his statements that he is completely out of touch with reality, like the rest of his ilk.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      ‘Mr. Greenspan has just proved by his statements that he is completely out of touch with reality, like the rest of his ilk.’

      I agree. These people are taking us down the Yellow Brick road!

  • MUHAMMAD SHAHZAD

    Alan Greenspan, the man who admitted he didn’t see the prime mortgage crisis coming, now has a new theory. He believes that the economy is on hold and will be controlled by the performance of the stock market. The stock market must be taking its own pause since it has dropped by some 10% during the past quarter, the biggest drop since 2008. Consumer confidence levels have also dropped according to a report on NBC news last evening.

    According to one news article Alan Greenspan was quoted as saying:

    “While ordinarily we’re seeing the stock market driven by economic events, I think it’s more the reverse,”Greenspan said in an interview today on CNBC. “What we do know is stock prices are a leading indicator.”

    Oh goody. . Thanks Mr. Greenspan for the heads up.

    Our entire economic system is dependent on Wall Street! Tomorrow I am going to alter my personal economic forecast and buy more gold and silver

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