You certainly make some excellent points...and I don't think we really disagree here. All I can say is that Greenspan used to be much more cautious when dealing with rates and other monetary policy. It seems he has become more reactionary in recent years and it makes me uneasy. I agree totally with this. Greenspan seems to be not trusting his instincts as much -- maybe with good reason, I dunno -- and making more "panic" type moves recently.
Such self-dealing in governmental contracts is forbidden by law, and there have been politicians booted out of office for it. So for that statement to have any credibility whatsoever...you better come with facts...not opinion...not conjecture and innuendo...but FACT.
It appears to me that the collective we have expanded Greenspan's job responsibilities to include preventing recesisons. The fed's prime responsibility is to take the edges off the swings in the economic cycle. This is closely followed by controlling inflation (deflation). The only difference in the recession this time around is that the equity markets are wildly overvalued. If we experience a slow recovery with slow earnings growth, the equity market could still drop. This in turn could lead to a drop in buyer's confidence and to a double dip in the recession.
i have a theory that greenspan is actually playing both sides against the middle...he's secretly studying the ways of the sith...putting together a massive army to battle rebellion on one side...causing concern about the stability and effectiveness of the administration on the other...training apprentices in the dark arts...i understand he spends half of his time draped in a big black robe...
