When younger, Alan Greenspan wondered if he could have prevented the Great Depression had he been Fed chairman during the 1920s. Fate, however, was to give Greenspan a far different future than he expected; instead of preventing a depression, he would cause one.
After the scare of the 1970s, central bankers, i.e. Greenspan et. al., focused on containing inflation and came to believe they had successfully done so, not realizing that monetary expansion had instead morphed into asset bubbles, e.g. stocks, property, and bonds, not general price inflation as in the past.
Deluded by his apparent success, as chairman of the Federal Reserve Greenspan provided Wall Street with ever-increasing amounts of credit while unleashing market forces that would someday bring down the markets themselves (not until his Fed tenure ended would most understand what Greenspan had set in motion).
Receiving an honorary knighthood from the Queen of England in 2002 for his apparent ability to create growth without inflation, Greenspan enjoyed the adulation of his increasingly wealthy followers who had not yet experienced the end-result of his policies, to wit the catastrophic collapse of global markets on an unprecedented scale.
Greenspan?s loose credit policies were to be responsible for the collapse of the two largest bubbles in history, the US dot.com and the US property bubbles. Their sequential destruction within a decade would unleash 20 years of Greenspan?s unprecedented compounding debt upon an unsuspecting world-a vast deleveraging that would bring down the global economy and push it towards the edge of another Great Depression.
If fortune was unkind to Alan Greenspan, it would be no less so to his successor, Ben Bernanke. Bernanke would be the chairman of the Federal Reserve when Greenspan?s massive property bubble collapsed in 2007, one year after Greenspan resigned.
But Ben Bernanke, like Greenspan, also had a date with destiny that was to be far different than expected; for just as Greenspan wondered if he could have prevented the Great Depression, Bernanke was certain that he, Ben Bernanke, if appointed chairman of the Fed, possessed the requisite knowledge to reverse a depression should one occur.
And just as fortune had presented Greenspan the opportunity to test himself and his theories in real time, Ben Bernanke was to be afforded the very same opportunity. The outcomes would not be dissimilar.
Pity should be reserved only for those deserving
Get the latest information about oil stocks and the best oil futures for your investments!
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Source: http://home-family-parenting.info/gold-the-future-and-the-way-through/
blue book jim morrison grease chris colfer air china kung fu panda 2 sepsis
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.