Alan Greenspan is like a child on a long ride who keeps asking "are we there yet?". According to the former Fed chief, the US is finally in an "awfully pale recession" writes Reuters.
For some time, Greenspan said the odds of a recession where less than 50/50 He finally made it to the point where he was willing to say the chances for the economy dodging a slowdown were less likely. Now he calls the recession one which is mild and may last the year.
Greenspan has been, for some odd reason, behind the curve in terms of his thinking about how bad off the US economy is. Fellow pundit Warren Buffett called a recession some time ago. Most economists have said the GDP faces negative growth.
Greenspan's views may have something to do with keeping his name in the press and his speaking deals coming. By being just outside the major wisdom on the current economic situation he can be viewed as an alternative to the conventional wisdom. Being a little bit wrong can be good for Greenspan's book sales and business. Taking the same view as everyone else gets him lost in the shuffle.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 newsletter.
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Reader Comments (Page 1 of 1)
5-05-2008 @ 7:50AM
realamerican said...
I do not trust Alan Greenspan anymore. Nor do I trust Warren Buffet. He is far too liberal in his ideas about taxation. His comment about (himself) paying less capital gains tax than his cleaning women is a very suspicious statement and should be examined in depth...That's really flaunting it in the face of the government.
5-05-2008 @ 8:36AM
Budo said...
They all are in cahoots one way or another. Buffett knows all the ways to scam and Greenspan is WELL out of touch. We have been in a recession for quite some time and it is OBVIOUS to everyone except the few rich. The rest of us do not matter and are given $600 rebate checks to calm our nerves. As if $600 solves anything?!
People are losing their homes, cannot fuel their vehicles, cannot afford groceries, utilities, small things in life while the government rapes social security and the dollar falls to little value, therefore allowing foreigners to buy up property and goods for bargain basement prices.
The amazing and ludicrous thing is that the stock market is not below 10,000 points. It is amazing how schooled individuals can make a financial report look good (Enron) by accounting "adjustments" and misleading practices to make things appear MUCH better than they are. Wait until we have another bubble like the 2000 tech blowout and that will be soon.
The more I hear people speak of a conspiracy factor, the more I am now listening. There is way too much hypocrisy going on these days.