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Stockman calls Greenspan on his cause for "bubbles"

derrybderryb Posts: 36,824 ✭✭✭✭✭
in Precious Metals
C’mon Alan! Bubbles Are Caused By Central Bankers, Not “Human Nature”

"His legacy is a toxically financialized economy that has extracted huge windfall rents from main street, and left it burdened with overwhelming debts and sharply reduced capacity for gains in real living standards and breadwinner jobs. Yet after all this time Greenspan still insists on blaming the people for the economic and financial havoc that he engendered from his perch in the Eccles Building."

"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

Comments

  • tneigtneig Posts: 1,505 ✭✭✭
    That's deep. And bubbles will continue.
    COA
  • jmski52jmski52 Posts: 22,858 ✭✭✭✭✭
    Greenspan = that government of the banks, by the banks, for the banks, shall not perish from the earth. Or so it seems.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • rawteam1rawteam1 Posts: 2,472 ✭✭✭
    Lol, stockman a worthless shill.... Which fed or central bank caused the tulip bubble? Or other bubbles? Mississippi?...

    Lol, a politician speaks, the people listen....
    keceph `anah
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Lol, stockman a worthless shill.... Which fed or central bank caused the tulip bubble? Or other bubbles? Mississippi?...

    Lol, a politician speaks, the people listen.... >>



    A concentrated banking system and unlimited free liquidity are a sure potion for market excess.

    Was not around during the Tulip bubble. Perhaps Ricko can lend some insight. image
  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>Lol, stockman a worthless shill.... Which fed or central bank caused the tulip bubble? Or other bubbles? Mississippi?...

    Lol, a politician speaks, the people listen.... >>


    bubbles are caused by increased liquidity and cheap credit. Banks control liquidity and cheap credit.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • rawteam1rawteam1 Posts: 2,472 ✭✭✭


    << <i>

    << <i>Lol, stockman a worthless shill.... Which fed or central bank caused the tulip bubble? Or other bubbles? Mississippi?...

    Lol, a politician speaks, the people listen.... >>


    bubbles are caused by increased liquidity and cheap credit. Banks control liquidity and cheap credit. >>


    That makes no sense, u have an answer to my tulip n Mississippi question?...
    People cause bubbles, they move money into an asset , much like silver bubble in 2011, tulips, Ty beanie babies etc...
    keceph `anah
  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>Lol, stockman a worthless shill.... Which fed or central bank caused the tulip bubble? Or other bubbles? Mississippi?...

    Lol, a politician speaks, the people listen.... >>


    bubbles are caused by increased liquidity and cheap credit. Banks control liquidity and cheap credit. >>


    That makes no sense, u have an answer to my tulip n Mississippi question?...
    People cause bubbles, they move money into an asset , much like silver bubble in 2011, tulips, Ty beanie babies etc... >>


    monetary policy determines the ease with which they have acess to money. While people choose what to "bubble," their ability to "bubble" is controlled by those who control the availability of money. If they weren't currently "bubbling" the equity market, their cheap money would be bubbling something else. Last time it was real estate, before that it was dot coms. Monetary policy fuels the bubblemobile, individuals only steer it. Wanna see the equity bubble pop? Take away the fuel (QE and the ZIRP).

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • rawteam1rawteam1 Posts: 2,472 ✭✭✭


    << <i>

    << <i>

    << <i>

    << <i>Lol, stockman a worthless shill.... Which fed or central bank caused the tulip bubble? Or other bubbles? Mississippi?...

    Lol, a politician speaks, the people listen.... >>


    bubbles are caused by increased liquidity and cheap credit. Banks control liquidity and cheap credit. >>


    That makes no sense, u have an answer to my tulip n Mississippi question?...
    People cause bubbles, they move money into an asset , much like silver bubble in 2011, tulips, Ty beanie babies etc... >>


    monetary policy determines the ease with which they have acess to money. While people choose what to "bubble," their ability to "bubble" is controlled by those who control the availability of money. If they weren't currently "bubbling" the equity market, their cheap money would be bubbling something else. Last time it was real estate, before that it was dot coms. Monetary policy fuels the bubblemobile, individuals only steer it. Wanna see the equity bubble pop? Take away the fuel (QE and the ZIRP). >>


    U still didn't answer the question, which by doing so messes up your theory, also what bubble in past 20 or so years in japan? since they have operated under your theory...
    keceph `anah
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Some bubbles, such as tulipmania, are simply the result of an unregulated futures market where no margin was required, no money was required and no delivery was taken. These types of early bubbles were driven strictly by speculators with no required financial backing and were not driven by availability of money as were the dot.com bubble, the real estate bubble and the current equity bubble. Modern bubbles, even those in now regulated futures contracts where some backing by money is required, are dependent on the availability of money.

    A primary cause of the 1720 bubble, which included the Mississippi Company in France and the South Sea Company in Britain, was the creation of new "financial technology" known as a debt-for-equity conversion that was designed to assist in a shift to global trade. This new monetary policy allowed them to exchange equity shares for government debt; in effect converting the national debt of their respective countries into corporate stock. This had the affect of providing more money for unchecked speculation.

    Japan experienced an asset bubble from 1986 to 1991 in which real estate and stock market prices became greatly inflated. The bubble episode was fueled by a significant drop in short-term interest rate notably between 1986 and 1987. The BOJ had slashed the official discount rate from 5.00% (January 30, 1986) to 2.50% (February 23, 1987). Japan to this day has not economically recovered from it error in choosing low interest rates.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • rawteam1rawteam1 Posts: 2,472 ✭✭✭
    Yes so where's the bubble?

    And no bubble for 25 years?....

    keceph `anah
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>U still didn't answer the question, which by doing so messes up your theory, also what bubble in past 20 or so years in japan? since they have operated under your theory... >>



    Equity market jumped from the mid 8000's to the 16,000's in less than a year in Japan. It began when PM Abe opened up the floodgates and announce a doubling of the money supply in 18 months.

    Loose money in itself does not guarantee a bubble market, as the commodities have been relatively tame. The fed directed the money to prop up the stock market, and with the proper collusion, the scheme was quite successful. Those getting in late may not see it that way though.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>Yes so where's the bubble?

    And no bubble for 25 years?.... >>


    Japan has had no asset bubble for 25 years because, unlike American speculators, it has chosen to redirect cash flow from investment to debt repayment. This redirection of money continues to keep Japan in an economic slump. As I said earlier "monetary policy fuels the bubblemobile, individuals only steer it." Japanese drivers have chosen to go in the other direction.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭



    There was a bit of a bubble in Japan in the 80's and early 90's.

    A lot of property in the US was bought by Japanese . Sort of like the property being bought here in the US by russian and chinese money now.
  • rawteam1rawteam1 Posts: 2,472 ✭✭✭


    << <i> As I said earlier "monetary policy fuels the bubblemobile, individuals only steer it." Japanese drivers have chosen to go in the other direction. >>


    lol, oh sorry, i didnt see where u changed up in stride...
    keceph `anah
  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭
    Japan has had no asset bubble for 25 years because

    Is the Japanese Yen an asset?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭
    Sorry to burst your bubble, Mr Stockman, but central banks do not create bubbles. However, you are free to dispense this jibberish as there does seem to be some market for it. Aint America great?! image
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>Japan has had no asset bubble for 25 years because

    Is the Japanese Yen an asset? >>


    liability

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭


    << <i>

    << <i>Japan has had no asset bubble for 25 years because

    Is the Japanese Yen an asset? >>


    liability >>



    I guess that depends on what side of the ledger you are on, but regardless, at is that a bubble?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>Japan has had no asset bubble for 25 years because

    Is the Japanese Yen an asset? >>


    liability >>



    I guess that depends on what side of the ledger you are on, but regardless, at is that a bubble? >>


    In terms of "overbought," no. Overprinted, yes. Same with all major currencies that are fighting to be at the bottom of the heap.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>

    << <i>Japan has had no asset bubble for 25 years because

    Is the Japanese Yen an asset? >>


    liability >>



    I guess that depends on what side of the ledger you are on, but regardless, at is that a bubble? >>


    In terms of "overbought," no. Overprinted, yes. Same with all major currencies that are fighting to be at the bottom of the heap. >>



    The best cure for excess, is .... image
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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