Yesterday Dr. Alan Greenspan chaired his last FOMC meeting and cheerfully walked away from 18 years of civic duty. While investors and "wall street types" almost unanimously give praise to the "maestro" his legacy won't be completely understood until the effects of this monetary policy dissipate through the economy in the upcoming years. Dr. Greenspan has cultivated a positive public image for the FED and has mitigated previous claims that the FED was too secretive. On the same note Dr. Greenspan has also clearly dispelled the belief that the FED is a "rich boys" club designed to protect bond yields for the super rich. He cheered on the dotcom bubble with irrational exuberance right up to the point of explosion, leaving white collar hustlers weeping. He has adopted a similar stance towards the current, much debated, asset/housing bubble, which may also leave unscrupulous investors up a creek without a paddle. Above all, the majority of Greenspanian praise has been for simply averting the mistakes made by his predecessors. During his 18 year tenure he has kept inflation within reach, avoided any major employment shocks, and helped maintain steady economic growth. So, during his last day in office he was seen rockin a bright eyed smirk, knowing that Dr. Bernanke was going to have his hands full. Bernanke will inherit an increasingly unbalanced economy characterized by a huge current account deficit, low consumer savings, and a decreasing foreign appetite for dollar denominated investments. Dr. Greenspan will fade to black at just the right time, being praised for his previous accomplishments while brushing pending economic concerns under the carpet. Tchau Greenspan."Don't hate the economist, hate the economy"
CTM
1 comment:
Poor Al has just been sblogged.
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