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Thread: Thank you, Alan Greenspan

  1. #1

    Thank you, Alan Greenspan

    While the tech bust caused real pain, I'm confident enough in the American economy that it would have rebounded from 2000 - over 7 years later. Instead, you tried to prolong the inevitable by distorting the market and artificially lowering interest rates.

    Now in 2008, we are back where we started, in the midst of another probable recession due to easy money. What will the Fed's solution be? Cutting rates. Just try to forget that it's what got us in the mess in the first place.

    Here's to you, Greeny. You had a nice run, but history will not serve you well.

  2. #2
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    [QUOTE=BrooklynBound;2321755]While the tech bust caused real pain, I'm confident enough in the American economy that it would have rebounded from 2000 - over 7 years later. Instead, you tried to prolong the inevitable by distorting the market and artificially lowering interest rates.

    Now in 2008, we are back where we started, in the midst of another probable recession due to easy money. What will the Fed's solution be? Cutting rates. Just try to forget that it's what got us in the mess in the first place.

    Here's to you, Greeny. You had a nice run, but history will not serve you well.[/QUOTE]

    While that last line is 100% true (even Greeny said that), today is not like the year 2000. Back then, not only were interest rates artificially low, but almost anyone could get a mortgage. Today, unless your credit is outstanding &/or you can show your income, you have little, if any, chance of securing a mortgage.

  3. #3
    [QUOTE=One Eye;2321764]While that last line is 100% true (even Greeny said that), today is not like the year 2000. Back then, not only were interest rates artificially low, but almost anyone could get a mortgage. Today, unless your credit is outstanding &/or you can show your income, you have little, if any, chance of securing a mortgage.[/QUOTE]

    I'm not talking about today, I'm talking about the past 6 years which made it too easy for dumb money to chase overly risky investments. Today and tomorrow are just the effects of poor decisions based on placating people in the short-term.

  4. #4
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    [QUOTE=BrooklynBound;2321769]I'm not talking about today, I'm talking about the past 6 years which made it too easy for dumb money to chase overly risky investments. Today and tomorrow are just the effects of poor decisions based on placating people in the short-term.[/QUOTE]

    And we are all paying for them. 2008 is going to be a BAD year for a lot of people.

  5. #5
    [QUOTE=One Eye;2321775]And we are all paying for them. 2008 is going to be a BAD year for a lot of people.[/QUOTE]

    And a good one for some.

    Invest baby, invest!!!

  6. #6
    [QUOTE=Neil Diamond;2321793]And a good one for some.

    Invest baby, invest!!![/QUOTE]

    I wonder if the Japanese in the late 1990s thought the same thing.

  7. #7
    Oh, yeah. Thanks for the extra $500, too. That will surely solve our debt and inflation problem.

  8. #8
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    Question, I'm in the process of buying a gas/repair station. What are anyone's thoughts on how bad a recession would hit that industry?

  9. #9
    flushingjet
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    [quote=BrooklynBound;2321814]Oh, yeah. Thanks for the extra $500, too. That will surely solve our debt and inflation problem.[/quote]

    well, dont give it to rupaul to waste on a blimp then

    buy a share of google

    wait 5 yrs

    retire on the proceeds

  10. #10
    [QUOTE=flushingjet;2322074]well, dont give it to rupaul to waste on a blimp then

    buy a share of google

    wait 5 yrs

    retire on the proceeds[/QUOTE]A Paul-type policy towards the Fed would have prevented this. The market knows interest rates a hell of a lot better than some elites in an ivory tower using lagging information.

  11. #11
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    [QUOTE=CTM;2321955]Question, I'm in the process of buying a gas/repair station. What are anyone's thoughts on how bad a recession would hit that industry?[/QUOTE]

    Might actually be good for you. If people can't afford to buy new cars, they just might have to keep their old 2002 clunkers and instead of having them repaired at a dealership for $2,467/hour they might be forced to take their vehicle to a more reasonably priced repair facility.

  12. #12
    [QUOTE=CTM;2321955]Question, I'm in the process of buying a gas/repair station. What are anyone's thoughts on how bad a recession would hit that industry?[/QUOTE]




    I think your reputation as a repair shop will be the driving factor for a successful gas/repair business.
    If the price of gas keeps going up probable more people will be buying brand X less expensive type gas and not expensive well known brands. Just my opinion. Good Luck

  13. #13
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    [QUOTE=PlumberKhan;2322132]Might actually be good for you. If people can't afford to buy new cars, they just might have to keep their old 2002 clunkers and instead of having them repaired at a dealership for $2,467/hour they might be forced to take their vehicle to a more reasonably priced repair facility.[/QUOTE]

    That was my thought to, but my father heard a report that people tend to do their own repairs more during recession or impose on friend/family.

  14. #14
    The Greenspan retirement plan --

    Step 1: Create housing asset bubble by keeping interest rates too low. Actively encourage homeowners to refinance using adjustable rate mortgages.

    Step 2: Short the sub-prime market in your new hedge fund to benefit from the ensuing devastation.

    Step 3: Collect insane profits.

    -------------

    [url]http://dailybriefing.blogs.fortune.cnn.com/2008/01/15/greenspans-masterful-timing/[/url]

    Alan Greenspan keeps on cashing in. The former Fed chief is joining hedge fund Paulson & Co. as an adviser. The move, which comes on the same day that Merrill Lynch (MER) and Citi (C) raise some $21 billion in new capital to offset losses tied to the collapse of the housing bubble, puts Greenspan on the advisory board of the firm that has been among the biggest winners in betting against subprime mortgage-related securities. Greenspan, who has also been busy promoting his book, already advises bond shop Pimco and Germany’s Deutsche Bank, The Wall Street Journal points out.

  15. #15
    Bernanke, you've officially become Wall St.'s b*tch.

    The Fed can temporarily avert big market declines by lowering nominal rates... just as I can stop my two year old's tantrum by giving him chocolate ice cream. Neither strategy is good for the long term....

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