Alan Greenspan Says Significant Correction Coming
In an interview with Bloomberg’s Betty Liu, former Federal Reserve Chair Dr. Alan Greenspan said the U.S. is “running out of buffer in economy,” “lacks fiscal resources,” and has “no way to find new revenues.”
Alan Greenspan on equity markets
Greenspan said equity markets will see a decline at some point after surging for the past several years, “The stock market has recovered so sharply for so long, you have to assume somewhere along the line we will get a significant correction.”
Greenspan also said:
- Sees near-term economic momentum continuing.
- ‘Key question’ is whether U.S. faces false dawn.
- ‘Open question’ whether inflation will surprise.
- Concerned economy may hit ‘upside resistance.’
- ‘We have a lot of uncertainty out there.’
- Equity premium is ‘closer to normal.’
- Predicts at some point equities to have correction.
- Oil market has excess capacity, slack.
- Without Middle East tension oil prices would fall.
- Not at point where taper will turn around.
- Sees problem moving toward ‘normalized’ policy.
- Fiscal policy may put status of dollar at risk.
Comments (17)
Considering he’s the one that started all of this mess, and his legacy still continues to run the Fed, he would know better than anyone.
So Greenspan in all his infinite wisdom, creator of the housing bubble etc…now is telling us things are going to get worse, you dopey bastard this mess is on your hands!!
I wish this old fool would die. Cant stand him
Don’t listen to Greenspan. He’s the idiot that said the markets could handle the unregulated banking industry, liars loans, speculation, corruption, and a housing market implosion was impossible.
Indeed he was only decent at forecasting the past – and I am generous.
Don’t worry Jumbo Jet Janet has her hand on the throttle ready to hit the QE4 afterburners. If that doesn’t work she’ll blast them with negative interest rates . Helicopter Ben just didn’t have the payload capacity or thrusting power to produce enough escape velocity to get us out of this Great Depression.
When Greenspan speaks, he does it for the American Communist Wall St. and Federal Reserve.
Is there ever “certainty” out there?
The all clear signal that it is safe to buy.
what he means is America can no longer borrow money and we are heading for a financial collapse….cloward-piven at work
Dollar is ticking away too.
From a guy who NEVER saw anything coming (not even the internet revolution), it is quite funny.
I could have said the same thing…the guy is a moron
When considering the ramifications of Mr. greenspan’s predictions, one should remember that any wealth gotten through stock market manipulation is only worth the paper it is written on. When rich, corrupt pricks like Greenspan talk, head to the nearest seller of precious metals and only buy what you can hold next to your person. Once paper wealth dies, those of us smart enough to have precious metal will rule the world.
Still the master of saying not much concrete at all.
No one knows when the equity bubble will burst but being inflation is starting to kick in its only a matter of time.
Greenspan is spouting trivia. At some point all of his statements will be true and false. Take your pick.