Tuesday, March 06, 2007

Should Alan Greenspan shut his piehole?

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Fed chairman Ben Bernanke recently gave an "upbeat" opinion on the U.S. economy. Alan Greenspan said things aren't so good. Financial Times:

    Alan Greenspan risked stirring renewed controversy on Tuesday when he told Bloomberg news agency that there was a “one-third probability” of a US recession this year.

    The former Federal Reserve chairman’s comments are starkly at odds with the relatively upbeat assessment made by Ben Bernanke, his ­successor, in testimony to Congress last week.

    Mr Greenspan’s latest remarks come barely a week after he told investors in Hong Kong that he thought a US recession this year was “possible”. The comments spread quickly through the investment community, spooking investors and ­contributing to turmoil in financial markets.

    Following a global sell-off in equities and other assets, Mr Greenspan was forced to clarify his original statement, declaring he had said that a recession this year was “possible” but not “probable”.

Greenspan can have a dramatic impact on our economy and the stock market, even in retirement. But should he be opening his pie hole after stepping down? Why retire if he's still in the game?

My view is that he should speak his mind.

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