Post by unlawflcombatnt on Mar 16, 2007 14:50:52 GMT -6
Meet Alan Greenspan, the newest "bear" in the market. Though Greenspan continues using his obfuscating Fed-speak when analyzing the market, it does not obscure his new "bearishness."
In discussing the subprime situation and possible spillover, Greenspan makes an expected comment that it's "hard to find any evidence" of spillover from subprime mortgages. Then, very un-characteristically (after injection with truth serum??), Greenspan states "You can't take 10 percent out of mortgage originations without some impact." Though it doesn't take a rocket scientist to figure this out, it is surprising that Greenspan even acknowledges this point. Greenspan further states that some problems have turned up in collateralized debt markets, as well as stating that subprime woes were "not a small issue."
Greenspan further states that much of the strength in consumer spending over the last 5 years has been financed by capital gains on surging home prices. Greenspan goes on to state that "If home prices keep falling, there could be more of an impact on the broader economy's momentum."
Referring to credit derivatives markets, Greenspan states "There's an insanity out there that I don't understand." Join the club.
The full Yahoo Finance article by Ros Krasny can be found at
biz.yahoo.com/rb/070315/usa_economy_greenspan.html?.v=1
I can't wait to hear Larry "I-lost-my-straitjacket" Kudlow's comments on Greenspan. He'll be calling Greenspan a socialist, or even a communist. This would put Greenspan in the same category as the other new "left-wing socialists" like comrades Lou Dobbs, Pat Buchanan, and Paul Craig Roberts.
(Kudlow might even flash a hammer & sickle symbol on the screen).
In discussing the subprime situation and possible spillover, Greenspan makes an expected comment that it's "hard to find any evidence" of spillover from subprime mortgages. Then, very un-characteristically (after injection with truth serum??), Greenspan states "You can't take 10 percent out of mortgage originations without some impact." Though it doesn't take a rocket scientist to figure this out, it is surprising that Greenspan even acknowledges this point. Greenspan further states that some problems have turned up in collateralized debt markets, as well as stating that subprime woes were "not a small issue."
Greenspan further states that much of the strength in consumer spending over the last 5 years has been financed by capital gains on surging home prices. Greenspan goes on to state that "If home prices keep falling, there could be more of an impact on the broader economy's momentum."
Referring to credit derivatives markets, Greenspan states "There's an insanity out there that I don't understand." Join the club.
The full Yahoo Finance article by Ros Krasny can be found at
biz.yahoo.com/rb/070315/usa_economy_greenspan.html?.v=1
I can't wait to hear Larry "I-lost-my-straitjacket" Kudlow's comments on Greenspan. He'll be calling Greenspan a socialist, or even a communist. This would put Greenspan in the same category as the other new "left-wing socialists" like comrades Lou Dobbs, Pat Buchanan, and Paul Craig Roberts.
(Kudlow might even flash a hammer & sickle symbol on the screen).