Good Tuesday morning:

• Alan Greenspan: Why I Never Saw It Coming (Foreign Affairs)
• Benefits of Studying Insiders’ Trading Patterns (WSJ)
• 4 Reasons Japan Could Continue to be the Land of the Rising Stock Market (BlackRock)
• The Bond Bubble (Dr. Ed’s Blog) but see Is That Really a Reason To Be Bearish? (Macro Man)
• How MF Global’s ‘missing’ $1.5 billion was lost — and found (Fortune)
Todays odd BBRG headline: Gold No Slam-Dunk Sell in China as Aunties Buy Bullion (Bloomberg)
• Obama’s First-Term Finance Team: Where Are They Now? (DealBook)
• Apple’s ground-breaking bet on its clean energy infrastructure (Giga Om)
• Quantum mechanics made relatively simple (Kottke)
• The 100 Best, Most Interesting Blogs and Websites of 2014 (Daily Dekk)

Whats up Doc?



S&P 1500 AD Line Confirms Rising Stock Prices

Source: Humble Student of the Markets

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “10 Tuesday AM Reads”

  1. hue says:

    Hackers or Slackers? Where Is the Next Generation of Coders? (BBC News)

    Wonkbook: Change is painful. But the health-care status quo is a complete disaster. (WaPo)

    A Decade of Monster Hurricanes (MoJo)

  2. wally says:

    Poor Alan.
    It is not so much that he did not foresee catastrophic collapse, but that he did not recognize the long-simmering irresponsibilities that led to it.

  3. RW says:

    Just another demonstration that the intellectual incoherence (and/or dishonesty) required to write and sign the infamous inflation letter was not a one-shot deal; the signers of that letter do it again and again, are wrong again and again, and still get invited to expound their putative ‘expertise’ in public.*

    Another Taylor Rule

    Or at least it seems to be a new rule — namely, pick whatever price index makes the point you want, even if it’s not at all the price index you would normally use.

    Via EconoSpeak, John Taylor says that the U.S. economy was too experiencing a substantial acceleration of inflation during the years when he says monetary policy was too loose …

    *As a dog returns to its vomit, so fools repeat their folly. -Proverbs 26:11 (NIV)

  4. catclub says:

    Alan Greenspan continues to pretend that NOBODY could have predicted the effects of the real estate bubble.
    It is very tiresome that his assistant cannot be bothered to do a quick google search.

    Also, who exactly were the regulators during the time in question? Clearly no one Greenspan knew or could influence.

    Tiresome liar.

  5. washunate says:

    Greenspan sure is remarkably consistent. 3,087 words and he didn’t even accidentally write fraud or crime or corruption. Or apology. That would have been an interesting word.

  6. ZedLoch says:

    I think Greenspan is selling himself a little short. The housing boom peaking in July 2006, the crisis hit crescendo in 2008.

    “[The] vast increase in the market value of asset claims is in part the indirect result of investors accepting lower compensation for risk. Such an increase in market value is too often viewed by market participants as structural and permanent…history has not dealt kindly with the aftermath of protracted periods of low-risk premiums.”

    -Alan Greenspan, 2005

    “A good part of this expansion is a direct function of the decline in real equity premiums. That cannot go on indefinitely….I am reasonably certain that what we are looking at today is an abnormal situation.”

    -Alan Greenspan, 2006

    As Krugman points out, he was WAY off the mark in 2004. But it seems he turned around in 2005, a full year in advance, and joined the dire-prediction crowd. How many others can truly say the same?

    This probably doesn’t absolve him of his role in the matter, as he only saw the folly after he was out of position to do anything about it. But I’m not so sure he’s the rambling idiot so many economic circles like to paint him as these days.

  7. Internet Tourettes says:

    Alan Greenspan is the Mr. Burns of the economics profession.

  8. farmera1 says:

    Greenspan’s book The Age of Turbulence is very interesting reading. Greenspan was and probably still is a full blown Ayn Rand devotee and a very radical deregulator.

    I often wondered how some one that didn’t believe in regulation became the head of one of the largest governmental bureaucracy’s in the world aka the FED. HE explains in his book:

    “…I had long since decided to engage in efforts to advance free-market capitalism as an insider, rather than as a critical pamphleteer. ”

    “It did not go without notice that Ayn Rand stood beside me as I took the oath of office in the presence of President Ford in the Oval Office. Ayn Rand and I remained close until she died in 1982.”

    Greenspan was heading an organization that he never really believed and supposedly enforcing laws that he thought were very destructive his preferred option was full “free market capitalism”, you know all of those creative financial instruments (derivatives for example) would set us free. All the government needed to do was stay out of the way. Not hard to understand that when it all blew up in his face, he was very surprised. He really hasn’t come to grips with what he did.

  9. Giovanni says:

    Well Mr. Greenspan seems quite comfortable drifting merrily down Mark Twain’s favorite non-American river. And who knew he (or his ghostwriter) was a Sting fan?

  10. gabeh73 says:

    Hardly a free-marketer. Greenspan is a mercantilist. He served on the Board of directors of JP Morgan for 10 years and then became Fed chairman where he used the vast powers of government to enrich JP Morgan.