Greenspan sees early signs of U.S. stagflation

Thank you for clearing things up even further. What can I say you rank "up there" with the likes of Gtech.

 

Come on, you just admitted to getting your facts from Wikipedia

 

Whose standard? The market is organic, flexible, looking for the path of least resistance and maximum profitability.

This is so misguided, it's like you haven't been paying any attention.

The subprime market was created by monkeying with the overnight rates, dropping them to 1%. As with the dotcom bubble, it was because there was too much liquidity in the system. Liquidity that was flooded in by the FED, not by people dumping their savings.

If the FED was smart, it would back off and let the market correct. But unfortunately, they have built up such a massive bubble, that we're looking at a possible global economic catastrophe if that were to happen, and even if we came out of that, America would no longer be the world's economic power.

 

There is always a bull market someplace.. dont worry.. one of the signs that its about to level is when everyone, and I mean everyone from TV, to newspapers(front page) all agree that is all doom. By this spring we should level.

Been enjoying watching the news changes from its all good to bad. I watched channel by channel as each one starts singing the same song(doom-doom-doom). Kudlow & Company is one of the last hanging onto the Goldilocks, and soon he will change his mind as well. At that point we are nearing a bottom, and the market will start to change, to something we all feel we could live with, then as always we will look for the next bubble. It was not to long ago(98s and 2001), that we busted some bubbles.. Only problem is this time it holds 12% of the market and we are all running home crying to mom about it.

Suck it up, and go find a bull market.. “Keep moving forward. Don’t dwell on the mistakes of the past”…

 

No I'm an not getting my facts from wikipedia I got a definition from wikipedia.

 

That has been the standard that market has given if for the past 50 years outside certain periods.

http://www.marketoracle.co.uk/Article2797.html


It wasn’t the Fed that offered loans to people who couldn’t afford them and liquidity will also be there, look at people who are caught up in the subprime mortgage mess and it isn’t just US banks which the Fed policies effect it’s also banks in Europe and Australia.


The market operates on two main principles fear and greed, slowly as the fear goes away the demand for greed increases and the market doesn’t function rationally.

 

Greenspan made the mess. Now he is calling for a bailout of home buyers that purchased overvalued homes.

"Former Federal Reserve Chairman Alan Greenspan said he favors spending government money to rescue Americans who are at risk of losing their homes because they can't make mortgage payments. "

``Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this,'' Greenspan said. ``It's far less damaging to the economy to create a short-term fiscal problem, which we would, than to try to fix the prices of homes or interest rates. If you do that, it'll drag this process out indefinitely.''

http://www.bloomberg.com/apps/news?pid=20601103&sid=ay4_531QKdpk&refer=us