Friday, February 26, 2010

Is Alan Greenspan Senile, Stupid or Both?

This is a direct quote from a Bloomberg news story 3 days ago:  Greenspan said he wants the subprime mortgage market to return. “I hope we can find a way of resurrecting the subprime market,” because it was working well until those mortgages were widely securitized, he said.

Hat tip to Ed Steer of Casey's Research Link.  Here's the original Bloomberg news story, because the statement is so outrageously unbelievable, I wanted to make sure it was bona fide:  Greenspan = MORON


  1. G-Span should just STFU already. Hasn't he inflicted enough suffering on the world? The dude is like a pandemic, personified.

  2. All I can say is, we are so screwed.

  3. Comex Inventory Data Reveal An Alarming Trend


  4. Dave apparently Helicopter Ben has said no more printing... atleast openly:

    ["We're not going to monetize the debt," Mr. Bernanke declared flatly, stressing that Congress needs to start making plans to bring down the deficit to avoid such a dangerous dilemma for the Fed.]

    I think this is why so many provisions are being placed by the government to essentially steal all of its citizens money.

    So it seems on the surface atleast John Williams scenario of a hyperinflationary collapse is not in the cards... tho it baffles me on how the US government is going to fund its obligations with a shrinking tax base and ballooning expenses?!

  5. anliu: heh heh know the old saying: "something isn't true until it's been denied at least 3 times." here's how that link you gave characterizes it:

    "Whether this is lip service or the Fed actually plans on carrying through remains to be seen."

    First, he was referencing "new Treasury debt." He didn't say anthing about existing mortgage debt and William Dudley - head of NY Fed and arguable more influential than Bernanke - has already stated that the Fed will extend mortgage QE is it's deemed to be needed. It's needed to keep things from collapsing.

    Away from this, Bernanke is plainly full of shit and what else would you expect him to say when he's in front of Congress while the Treasury is in the middle of a massive Treasury issuance?

  6. Dave, I'm not a fan of Banana, but I also think he will (openly atleast) be true to his word of not extending QE come march.

    Thing is, as we all know America is Greece times a million... So if this is mishandled we could have a Panarin and Orlov USA falling apart scenario.

  7. Greenspan is either inane or senile. I suspect the latter. He was always a dodgy (literally and figuratively) character. Now he seems to have totally lost the plot.

    If Banana Ben and his criminal cohorts shut off the spigots we will be in a full scale collapse quickly. And while clearing the debt may be the best way forward, the upshot of that will not just be collapsing tax receipts, but vanishing ones, as unemployment ratchets up substantially from its already elevated levels. Financial markets will likewise flat line.

    At that point, the bond market will be screwed anyway since who would loan money to a government that has NO CASH FLOW!

    Of such conditions is hyper inflation made. The argument against hyper-inflation has always been predicated on this:

    "They would never do that it would destroy the bond market."

    The bond market is going to be toast one way or another, either because a runaway economic collapse destroys the tax base, or because the authorities realize that you don't need no steenkin' bond market.

  8. Concerning what the Fed will or will not do, I refer you to Dave's masthead quote. Nuff said.

    Joe M.

  9. Joe, couldn't have said it better myself.

    Edwardo, what you just described, most people will never believe it's possible until we're halfway into the process of actual hyper-printing to keep things from collapsing. We are clost to that point.

    And anyone who thinks real civil unrest can't happen, just look at what happened in California two days ago...