Comments By Chairman Greenspan

[Baptist in Richmond]

What do you think of these comments by Alan Greenspan? I found this article on the Drudge Report.

I was rather shocked to hear these comments coming from the Chairman of the Federal Reserve.

Out of curiousity, how are the real estate prices in your area? Prices here in the Commonwealth are going through the roof. A co-worker of mine sold her two-year-old home for a $100,000 profit....after only TWO years.

Amazing....

Regards,
BiR

 

[pinoybaptist]

Mr. Greenspan is not God, so anything he says may not be considered infallible.
BUT, he is an economist, is he not, and like a weather forecaster who may forecast snow and actually get sunshine, he has certain past experiences and empirical data that he may be basing his conclusions and/or forecast on.
I think it is wise to listen to him, though with a little grain of salt.

 

[One View]

I agree, but when Greenspan talks people listen. If Greenspan frowns, the markets drop.

I too, am rather shocked by this. He's creating a self-fulfilling prophecy. Markets here have had a steady 10-15% annual gain.

 

[poncho]

How about this remark?

"The developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset: the increased flexibility of our economy, which has fostered our extraordinary resilience to shocks,"

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A plug for the FTAA and more "free trade"?

I figure it's way past time we give the boot to the fed and the honorable congressman from Texas agrees with me.

Few Americans truly understand how our Federal Reserve system enables Congress to spend far beyond its means, but the cycle of spending and printing money affects all of us. Simply put, the more money our Treasury prints, the less every dollar is worth. Our pure fiat money system, in place since the last vestiges of a gold standard were eliminated in the early 1970s, has reduced the value of your savings by 80%. Disregard the government’s Consumer Price Index, which substantially underreports price inflation. Monetary inflation is true inflation, and we only need to look at the cost of homes, cars, energy, and medical care to recognize that a dollar buys far less today than ever

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