Monday, April 18, 2005

Calls Mount For Action

The always tart Bill Fleckenstein has a word or two for Mr. Greenspan. "One of the most obvious would be to raise short rates to a level higher than the underlying rate of inflation (i.e., 5% to 6%) and take back some of the absurd stimulus that Alan Greenspan has foisted on the economy repeatedly over the last decade."

"This would simultaneously increase savings, reduce consumption and hurl us into recession. But we are headed there anyway. So let's get on with it before even more damage is done."

Stephen Roach chimes in, "The longer we wait, the more treacherous the endgame." And the subject of their columns, Paul Volcker, "What can be left to later, usually is, and then, alas, it's too late."

6 Comments:

At 9:14 AM, Anonymous Don said...

Ben, this might be of interest:

http://www.signonsandiego.com/news/business/20050417-9999-1b17specula.html

 
At 1:14 PM, Anonymous Anonymous said...

http://biz.yahoo.com/fo/050414/63531334fd8f6723a3d686b8c917371c.html

 
At 2:51 PM, Blogger John Law said...

fleck and roach are my heroes.

 
At 11:38 PM, Anonymous Anonymous said...

I think Alan Greenspan stayed there too long. What a horrible way of ending a career with a hyper bubble of speculative excesses. I hope for him after the big mess, his ego won't be too deflated. No problem it's ordinary folks that will get the depression.

 
At 11:51 PM, Anonymous Anonymous said...

Not with this horrendous debt level. It will hurl USA in depression. The whole financial pyramid is so leveraged that having a recession would seem a fun thing and a miracle.

 
At 8:34 AM, Anonymous Anonymous said...

Hi, everyone... just saw the numbers for existing home sales... and they're flat... just about the same as last month... if you have a chance, take a look at them by region and you'll see... flat sales = lower prices...

 

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