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RRP

Alan Greenspan’s Property Bubble U-turn

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In the end, America’s current-account funding problem remains very much a confidence game. To the extent that the confidence of foreign lenders is shaken as it normally is by the transition to a new Fed chairman, America’s unprecedented imbalances imply that financial market risks could be all the more acute. That could be the cruelest legacy of all for Alan Greenspan to leave to his successor.

Anybody for T Bonds ?

Snow and Greenspan Will Head to Beijing

Monday October 3, 2005 10:31 PM

By MARTIN CRUTSINGER

AP Economics Writer

WASHINGTON (AP) - Treasury Secretary John Snow and Federal Reserve Chairman Alan Greenspan will lead a high-level U.S. delegation to talks in Beijing over economic issues including China's efforts to reform its currency system.

Edited by RRP

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Al Greenspan helped create the "Grand Illusion" that wealth could be generated without effort. Mervyn King pointed out the risk in this mentality last year when he warned that the value of homes was a matter of opinion whereas debt is real. The illusory wealth created by inflated home prices is as real as the next person's opinion as to its value. The Housing market in the US and UK is as solid as the ground beneath the feet of Kylie Coyote as he runs off the edge of the cliff to chase Roadrunner. He is safe so long as he does not look down and realize there is nothing to underpin his mad rush forward. Leveraged homeowners and BTL's investors must be looking down into that same canyon about now.

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Al Greenspin knew the mess he was making, just like the rest of us.

I wonder why he is coming clean now. Is he confessing his Sins and hoping for absolution?

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The fact that it is only now he speaks out of his true believes

makes you think how independent the Federal Reserve Chairman

actually was/is.

My guess is that all claims/rankings of independency

of central banks in Anglo-Saxon world are rubbish.

Cheers

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  • 331 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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