Alan Greenspan to investors: 'Run for cover'

[poweRob]

Not a fan of this jack-wipe but he's now sending out some pretty strong signals...

Alan Greenspan to investors: 'Run for cover'

Alan Greenspan says the party's over on Wall Street. The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.

"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.​

 

[NeverTrump]

Not a fan of this jack-wipe but he's now sending out some pretty strong signals...

Alan Greenspan to investors: 'Run for cover'

Alan Greenspan says the party's over on Wall Street. The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.

"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.​

#Winning!

 

[tres borrachos]

Not a fan of this jack-wipe but he's now sending out some pretty strong signals...

Alan Greenspan to investors: 'Run for cover'

Alan Greenspan says the party's over on Wall Street. The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.

"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.​

Who cares about Wall Street? (courtesy Mycroft)

 

[Helix]

But the orange clown says everything is super.

 

[cabse5]

Invest in bonds. The American economy is experiencing inflation because it had done so well. Duh.

 

[NeverTrump]

Who cares about Wall Street? (courtesy Mycroft)

Worst start of Dec stock market since GD. Yet, my prepper boss who voted for Trump likes it b/c that means he was right for once in the four years I've known him since he's been talking about the big crash. I suspect he masturbates to this stuff.

 

[ttwtt78640]

It would be interesting to know where Mr. Greenspan has his ($20M?) of net worth invested.

 

[tres borrachos]

Worst start of Dec stock market since GD. Yet, my prepper boss who voted for Trump likes it b/c that means he was right for once in the four years I've known him since he's been talking about the big crash. I suspect he masturbates to this stuff.

When and if the market crashes, or continues its downward spiral, I predict the citizens of Trump Fan Nation will blame it on the Democrats.

 

[NeverTrump]

It would be interesting to know where Mr. Greenspan has his ($20M?) of net worth invested.

Look in Panama Papers?

 

[Jetboogieman]

Invest in bonds. The American economy is experiencing inflation because it had done so well. Duh.

Far as I can see inflation is not yet looking like it’s going to go too far from the Fed target of 2%, but that’s why it’s so important that the Fed raises interest rates to try to put a cap on where inflation can go, Wall Street can complain all it wants but it’s a necessary step when the economy is doing what it’s doing, barring another financial crisis, stocks are extremely overvalued and over the past few years speculators have been drunk, the fact that the Qatar blockade and Trump tearing the Iranian deal apart didn’t spike oil prices was interesting enough to me to pay attention to the fact Wall Street is a bit off.

I’m sure Wall Street wants nothing more than the cheap interest unlimited money train to continue, as Wall Street is built much like America is, debt and cash flow...

It’s what also makes the presidents comments pants on head retarded and the reason why the Feds independence is so important.

 

[Ikari]

It would be interesting to know where Mr. Greenspan has his ($20M?) of net worth invested.

Europe, lol.

 

[poweRob]

Invest in bonds. The American economy is experiencing inflation because it had done so well. Duh.

It took Dems about two years to turn around the great republican recession and put it on the right path again and it took republicans about two years to turn it back around and trash it yet again.

 

[ttwtt78640]

Europe, lol.

Greece?

 

[Ikari]

Greece?

They always seem to get bailed out by Germany.

 

[poweRob]

What the trump tax breaks really did for the economy...

Corporate America gives out a record $1 trillion in stock buybacks

Corporate America celebrated the first full year under the new tax law by rolling out a record-setting $1 trillion of stock buybacks.

US companies, led by Lowe's (LOW) and AbbVie (ABBV), rewarded shareholders by unveiling $34.4 billion in buybacks last week, according to TrimTabs Investment Research. That lifted repurchase announcements above $1 trillion for the first time ever, TrimTabs said, exceeding the prior record of $781 billion set in 2015.​

How many times do we have to be shown that republican trickle down economics is a failure?

 

[cabse5]

Far as I can see inflation is not yet looking like it’s going to go too far from the Fed target of 2%, but that’s why it’s so important that the Fed raises interest rates to try to put a cap on where inflation can go, Wall Street can complain all it wants but it’s a necessary step when the economy is doing what it’s doing, barring another financial crisis, stocks are extremely overvalued and over the past few years speculators have been drunk, the fact that the Qatar blockade and Trump tearing the Iranian deal apart didn’t spike oil prices was interesting enough to me to pay attention to the fact Wall Street is a bit off.

I’m sure Wall Street wants nothing more than the cheap interest unlimited money train to continue, as Wall Street is built much like America is, debt and cash flow...

It’s what also makes the presidents comments pants on head retarded and the reason why the Feds independence is so important.

The Fed will attempt to quell the effects of inflation by raising the interest rate which will slow down spending and interfere with free markets. Count on it.

Eventually, the interest rate on bonds will exceed the rate of interest one can make on stocks. Quit crying about the Stock Market and invest in bonds. Duh.

 

[cabse5]

It took Dems about two years to turn around the great republican recession and put it on the right path again and it took republicans about two years to turn it back around and trash it yet again.

Since you're going that route, it took Donald Trump about 6 months to generate more than 2% growth per year which BO could never, on average, produce in his 8 years as president.

 

[Mycroft]

Not a fan of this jack-wipe but he's now sending out some pretty strong signals...

Alan Greenspan to investors: 'Run for cover'

Alan Greenspan says the party's over on Wall Street. The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.

"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.​

He is correct. Wise investors WILL run for cover. But he doesn't talk about the real reason.

Kevin Hassett talks about it here. (in a nice way)





And believe me...this IS Trump's doing. The US economy will benefit.

(Nobody SHOULD care about Wall Street. You do so at your own peril.)

 

[ttwtt78640]

They always seem to get bailed out by Germany.

The USA is too big to bail.

 

[cabse5]

What the trump tax breaks really did for the economy...

Corporate America gives out a record $1 trillion in stock buybacks

Corporate America celebrated the first full year under the new tax law by rolling out a record-setting $1 trillion of stock buybacks.

US companies, led by Lowe's (LOW) and AbbVie (ABBV), rewarded shareholders by unveiling $34.4 billion in buybacks last week, according to TrimTabs Investment Research. That lifted repurchase announcements above $1 trillion for the first time ever, TrimTabs said, exceeding the prior record of $781 billion set in 2015.​

How many times do we have to be shown that republican trickle down economics is a failure?

Is this your allusion to the dying American middle class? Really? You seem to be for mass emigration to the US of scores of unskilled laborers. These undocumented unskilled laborers will always work for less than the current American middle class.

 

[ElChupacabra]

Not a fan of this jack-wipe but he's now sending out some pretty strong signals...

Alan Greenspan to investors: 'Run for cover'

Alan Greenspan says the party's over on Wall Street. The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.

"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.​

 

[poweRob]

Since you're going that route, it took Donald Trump about 6 months to generate more than 2% growth per year which BO could never, on average, produce in his 8 years as president.

Because his average was screwed up by the trash GW Bush handed him that took his first two years to turn around. While Obama handed trump that upward growth that he's throwing in the garbage can as GOPers are wont to do.

 

[justabubba]

such a sage:

A long-time cheerleader for deregulation, Greenspan admitted to a congressional committee yesterday that he had been "partially wrong" in his hands-off approach towards the banking industry and that the credit crunch had left him in a state of shocked disbelief. "I have found a flaw," said Greenspan, referring to his economic philosophy. "I don't know how significant or permanent it is. But I have been very distressed by that fact."

It was the first time the man hailed for masterminding the world's longest postwar boom has accepted any culpability for the crisis that has engulfed the global banking system.

During a feisty exchange on Capitol Hill, he told the House oversight committee that he regretted his opposition to regulatory curbs on certain types of financial derivatives which have left banks on Wall Street and in the Square Mile facing billions of dollars worth of liabilities.

"I made a mistake in presuming that the self-interests of organisations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms," said Greenspan.

[emphasis added by bubba]
https://www.theguardian.com/business/2008/oct/24/economics-creditcrunch-federal-reserve-greenspan

 

[OrphanSlug]

CNN's article left out a few things that I suspect Greenspan spoke about, because the issue is more than just interest rates.

Politically there is that battle between the White House not wanting a rate increase (4th this year) against what the Fed is likely to do. On this point investors are looking to the reasons that the Fed is likely to do this.

But there is a bigger issue. There is a new bubble in the economy, corporate debt. The debt corporations are willing to take on has reached a new high, no matter if compared to the size the economy or corporate cash on hand. That means the credit spread is high and the new levels are well above $9 Trillion. The total GDP for 2017 was something like $19.3 Trillion, for 2018 of course that number will be higher but we are still talking about Corporate Debt being well above 40% of GDP. What corporations are holding is roughly $2.1 to $2.2 Trillion in cash, which means debt to cash is somewhere north of 4x. The issue is not all corporations are holding the same levels of cash so the top companies (not in trouble) are down in the 3x range where as more risk prone organizations are approaching 6x or even higher. For context Corporate Debt to GDP or cash was much lower after the most recent crash.

Lower interest environments from the last crash helped this mentality of borrowing even when not necessary needing to for economic indications and/or business planning reasons. But the damage is done and the risk is there, which creates concern with equities when the Fed starts ending the party of lower rates. That means equity investors are paying more to invest in the debt levels that corporations are taking on.

Like the 2007-2008 crash eventually everyone will want out leaving someone to pick up the tab. Everyone's cost to borrow goes up, and no matter what reasoning the Fed has for 3-4 interest rate hikes this year that creates volatility for investors to determine where to park investment capital. Bonds are not necessarily a great option, but looking for hedge bets might across the board.

Now volatility is already there from a number of issues. Oil prices being down because of Trump's double play on Iran that means investment in expansion is questionable in relation to demand (at these low prices,) and Trump's trade dispute with China and others has caused a massive pain for investors to know who will be harmed next domestically and internationally.

What you will really see is a pending slowdown, potential recession, impacting everyone with the Fed, the White House, Congress, corporate decisions, and everyone else looking to blame something. But much like 2007-2008, they all are to blame in some regard.

All economic decisions have an impact... at some point. We are about to see what roughly a decade of decisions will do this time.

 

[cabse5]

Because his average was screwed up by the trash GW Bush handed him that took his first two years to turn around. While Obama handed trump that upward growth that he's throwing in the garbage can as GOPers are wont to do.

And Donald Trump was screwed up by the massive regulations of the BO years. You have a point?