Greenspan's Short Coming?
Much has been said over Greenspan's Conundrum and the Greenspan Put...
Regarding potential mixed economic signalling discussed in Davos: Black Swan Lake?
Neil: "Greenspan didn't give us "Laissez-faire capitalism" ... we only fooled ourselves into thinking that he did. What he did give us was interventions that looked benign, but those interventions gave us a false sense of security."
Tom: "(Greenspan realized the SP500) had signalling power which reflexively exerted an influence on the real economy by affecting business decision making and possibly consumer behavior, he failed to realize is that by inserting a governing influence, he was degrading the signal quality to a great degree and hence the decisions which flow from it are based on a bad signal. And what was once taboo, affecting the markets for policy reasons, is now policy de rigeur."
We Nattered: Utilization of a false measuring stick to measure ones potency, can give a false sense of security and when it comes time to stand up and deliver, cause a major short coming. Add it all up, the product of the "conundrum" and the "put" equals Greenspan's "short coming". That observation nails "the Maestro" and the Fed MO or policy de riguer, to the wall.
Regarding potential mixed economic signalling discussed in Davos: Black Swan Lake?
Neil: "Greenspan didn't give us "Laissez-faire capitalism" ... we only fooled ourselves into thinking that he did. What he did give us was interventions that looked benign, but those interventions gave us a false sense of security."
Tom: "(Greenspan realized the SP500) had signalling power which reflexively exerted an influence on the real economy by affecting business decision making and possibly consumer behavior, he failed to realize is that by inserting a governing influence, he was degrading the signal quality to a great degree and hence the decisions which flow from it are based on a bad signal. And what was once taboo, affecting the markets for policy reasons, is now policy de rigeur."
We Nattered: Utilization of a false measuring stick to measure ones potency, can give a false sense of security and when it comes time to stand up and deliver, cause a major short coming. Add it all up, the product of the "conundrum" and the "put" equals Greenspan's "short coming". That observation nails "the Maestro" and the Fed MO or policy de riguer, to the wall.
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