Someone is feeling a smidge guilty, eh?
Former Federal Reserve Chairman Alan Greenspan warned on Wednesday a global glut in liquidity would result in a fall in asset prices.
Greenspan, speaking to a financial conference in Seoul via satellite, also said separately that a U.S. law on corporate governance may have influenced some foreign companies to seek initial public offerings outside the United States.
"A good part of this expansion is a direct function of the decline in real equity premiums," Greenspan said. "That cannot go on indefinitely."
He said asset prices would begin to fall, but did not predict when that would happen.
"I am reasonably certain that what we are looking at today is an abnormal situation," he said.
April 12, 2006
Greenspan: Cause the bubble - check. Then warn about asset prices collapsing? Weird.
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7 comments:
Wait a minute! Greenspan caused the housing bubble?
I thought Ford Motor Company introduced Bush Sr/Cheney to the Saudis thereby creating rising oil prices that caused the Housing Bubble.
Just like you posted, remember?
In order to feel guilty, one has to be human and have a conscience. (This not not apply to the scum that causes financial disasters.)
So many people do not even know what a conscience is. Is it any wonder that murder and massive fraud are commonplace? According to psychologists, a large % (about 25%) fall into this catagory. Sad and sick.
I miss him.
I miss the dotcom days
What a chump.
Greenspan actively worked to pump up the bubble and keep those short-term economic indicators looking good...and then he retires when the shiite is about to hit the fan and issues imminent storm warnings.
What a chump.
"A glut in liquidity would result in a fall of asset prices"
WRONG!
Too much money chasing the same goods makes asset price RISE, not FALL!
The 20 year bull market in commodities (and assets) is upon use.
My favorite was when Greenspan suggested that new homeowners take out ARMs.
What a hoot!
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