Tuesday, November 10, 2009

Greenspan Congratulates Bernanke for Being an Excellent Pupil

Alan Greenspan is once again patting himself on his back for leaving behind a successor like Bernanke who is hell-bent on implementing Greenspan's 'death-by-a-thousand-cuts' asset inflation strategy. Judging by the way things are going Greenspan has trained his successor well.  A Bloomberg report headed 'Greenspan Says Stock Market Rally ‘Re-liquifying’ U.S. Economy', captures Greenspans' self-congratulation message:
Former Federal Reserve Chairman Alan Greenspan said a rebound in stocks is “re-liquifying” the U.S. economy and housing prices are showing early indications of ending their decline. “We have been very fortunate that the stock markets moved back” and are “re-liquifying the whole process,” Greenspan said at an event in Edmonton, Alberta.
Yeah, what a great strategy, people of America, put your tools down and go home. Why work and slog away your life, when you can just let Bernanke boy print dollars and lend them out at 0%. And uh...no need to return the borrowed principal - keep the change with our best compliments. Let these printed dollar flow into the non-productive sectors of the economy like housing and the stock market, and hey-presto you have "asset inflation" - a technical term for "dude you just made a ton of money doing NO work". All you need to do is borrow to buy a home or stocks. This has got to be the best get rich quick scheme ever!  
“It may be too soon, but all the relevant price indexes are turning,” Greenspan, 83, said. “Now whether or not that is temporary is very difficult to tell, because we have never been through anything like this.”
Mr. Greenspan you never did know your backside from your elbow. Would'nt life be easy if you could just have told your parents "Dad, I flunked my SATs because I have never been through an exam like that before".
“An ever-increasing part of your consumption must be met by industrial production,” rather than from inventories, he said, adding that this phase may extend into the second quarter of 2010. After that, the economic outlook “is going to depend to a very significant extent on what stock prices do.” Through stocks comes a “wealth effect” from realized capital gains, he said. 
Goldman Sachs hears you loud and clear Mr. Greenspan. They are soon to realize a large capital gain from some soon to arive bonus showers. As for the rest of you, the best you can do is pray for a job at Goldman Sachs.

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