Greenspan, our teacher, says no bubble

Enrique Diaz-Alvarez enrique at
Fri Apr 14 08:54:20 PDT 2000

Doug Henwood wrote:

> "I grant you that there are an awful lot of people in the market who
> cannot distinguish between what they are doing and what they would do
> in a casino," Mr. Greenspan said. But their impact was largely offset
> by "millions of intelligent investors who know the companies that
> they've invested in," he added. "It's the best judgment you can get."

Jesus Christ, he really *is* that stupid. Unbelievable. Now we are likely have a burst bubble, high and rising interest rates, and (see today) rising inflation, all at the same time.

> The recent volatility in markets, Mr. Greenspan asserted, had less to
> do with speculation -- or even the Fed's interest-rate increases --
> than the very nature of the unpredictable high-tech industry.
> "These types of stocks, these types of companies are at the cutting
> edge of technology, where there is a great deal of turbulence," Mr.
> Greenspan said. As a result, "earnings expectations ... would be
> expected to be quite volatile" and "that in itself is a reason why
> you would expect a high degree of stock-price volatility," he added.

This is absolutely insane. How could the US ruling class let this moron slip all the way to the top?

-- Enrique Diaz-Alvarez Office # (607) 255 5034 Electrical Engineering Home # (607) 272 4808 112 Phillips Hall Fax # (607) 255 4565 Cornell University mailto:enrique at Ithaca, NY 14853

More information about the lbo-talk mailing list