Realistbear Posted February 1, 2006 Share Posted February 1, 2006 http://www.tiscali.co.uk/news/newswire.php...y_template.html Greenspan to advise Brown on global economy 01/02/2006 11:41 LONDON (Reuters) - Newly retired U.S. Federal Reserve chairman Alan Greenspan has agreed to be honorary adviser to Chancellor Gordon Brown on global economic change, the UK Treasury said on Wednesday. Greenspan stepped down on Tuesday after nearly 19 years of running the U.S. central bank and has long enjoyed a close professional relationship with Brown. "I am delighted that Dr. Greenspan has agreed to be honorary adviser. His advice on issues relating to global economic change will be much appreciated," said Brown. Wow!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Quote Link to comment Share on other sites More sharing options...
karhu Posted February 1, 2006 Share Posted February 1, 2006 Ha! That's serious news. Interest rate rise, anyone? Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted February 1, 2006 Share Posted February 1, 2006 http://www.tiscali.co.uk/news/newswire.php...y_template.html Greenspan to advise Brown on global economy 01/02/2006 11:41 LONDON (Reuters) - Newly retired U.S. Federal Reserve chairman Alan Greenspan has agreed to be honorary adviser to Chancellor Gordon Brown on global economic change, the UK Treasury said on Wednesday. Greenspan stepped down on Tuesday after nearly 19 years of running the U.S. central bank and has long enjoyed a close professional relationship with Brown. "I am delighted that Dr. Greenspan has agreed to be honorary adviser. His advice on issues relating to global economic change will be much appreciated," said Brown. Wow!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2% rise in interest rates it is, then. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 1, 2006 Share Posted February 1, 2006 Finally, someone who knows what they're doing. Quote Link to comment Share on other sites More sharing options...
ChrisM Posted February 1, 2006 Share Posted February 1, 2006 Finally, someone who knows what they're doing. Well I don't know what he's got planned, but it's probably going to involve a load of new printed money. Quote Link to comment Share on other sites More sharing options...
teddyboy Posted February 1, 2006 Share Posted February 1, 2006 Finally, someone who knows what they're doing. Nick Leeson could be Browns advisor and do a BETTER JOB!!! TB Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted February 1, 2006 Share Posted February 1, 2006 Greenspan can advise all he wants but will Prudence listen? Should be interesting. Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 1, 2006 Share Posted February 1, 2006 Finally, someone who knows what they're doing. He is the fool that caused this global mess?? Is this good news or not??? As said above, all he seems to do is use the plastic. Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted February 1, 2006 Share Posted February 1, 2006 He is the fool that caused this global mess?? Is this good news or not??? As said above, all he seems to do is use the plastic. Well he has been on a rate-raising spree lately, and this seems to be having the desired effect on the US housing market. Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 1, 2006 Share Posted February 1, 2006 Well he has been on a rate-raising spree lately, and this seems to be having the desired effect on the US housing market. Yeah, but at the first sign of trouble, he prints money to save the pain for a later day. Only so many times he can do it, but can he/the Yanks do it again to offset the inevitable correction there, which will also drive UK down the toilet?? Thoughts? Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 1, 2006 Author Share Posted February 1, 2006 Well he has been on a rate-raising spree lately, and this seems to be having the desired effect on the US housing market. Al saw it coming about 2 years ago when he described HPI as "froth" and that some areas in the US (presumably the UK also) would experience some "painful corrections" as prices were no longer supported by the fundamentals. Al also warned about irrational exhuberance in the Dot.com market about 2 years before the bust. Well, its two years after the "froth" speech and the crash appears to be underway both sides of the Atlantic. Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 1, 2006 Share Posted February 1, 2006 Al saw it coming about 2 years ago when he described HPI as "froth" and that some areas in the US (presumably the UK also) would experience some "painful corrections" as prices were no longer supported by the fundamentals. Al also warned about irrational exhuberance in the Dot.com market about 2 years before the bust. Well, its two years after the "froth" speech and the crash appears to be underway both sides of the Atlantic. But he denied there was any sort of bubble going on for years and then said "there may be some froth". This guy is a total moron IMO. His policies will have to be paid for in the end. I am just worried whether they could try and plunge the rates down AGAIN!!!! and get away with it. There are only so many times you can do it and I think there is now too much debt for them to allow this. . . . . ??? ??? Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 1, 2006 Author Share Posted February 1, 2006 (edited) But he denied there was any sort of bubble going on for years and then said "there may be some froth". This guy is a total moron IMO. His policies will have to be paid for in the end. I am just worried whether they could try and plunge the rates down AGAIN!!!! and get away with it. There are only so many times you can do it and I think there is now too much debt for them to allow this. . . . . ??? ??? That is because for most of America there is no bubble. The "froth" was appearing in the coastal markets only. Al was willing to sacrifice those markets (all "blue" states BTW except FL) for the overall good of the nation. The UK has a bigger problem because the entire country is frothy. Something like a Latte gone horribly wrong. Edited February 1, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
?...! Posted February 1, 2006 Share Posted February 1, 2006 (edited) He is the fool that caused this global mess?? Is this good news or not??? As said above, all he seems to do is use the plastic. He did cause all of this. The man is nobody’s fool. After 9/11 he knew the US was going to war, he knew public contentment was low, people were scared. The man in a stroke of genius allowed the economy to continue to grow to prevent mass depression sweeping the US (he threw a party), the current position was economically engineered by Greenspan to allow GWB to focus on the war. Greenspan essentially leant a huge volume of cash to US consumers so they would go out and spend, thus temporarily propping up the US economy and funding two wars, both financially and by averting dissent. These wars are coming to maturity, and now the US people will begin to pay for the wars, and also pay for Greenspan’s temporary party to cheer everyone up. As it turns out the party that Greenspan threw to cheer up the US after 9/11 was a lot more expensive than the two wars. Apologise for the former horrendous mis-grammer. Edited February 1, 2006 by ?...! Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 1, 2006 Share Posted February 1, 2006 He did cause all of this. The man is nobody’s fool. After 9/11 he knew the US was going to war, he knew public contentment was low, people were scared. The man in a stroke of genius allowed the economy to continue to grow to prevent mass depression sweeping the US (he threw a party), the current position was economically engineered by Greenspan to allow GWB to focus on the war. Greenspan essentially leant a huge volume of cash to US consumers so they would go out and spend, thus temporarily propping up the US economy and funding two wars, both financially and by averting dissent. These wars are coming to maturity and now. The US people will begin to pay for the wars, and also pay for Greenspan’s temporary party to cheer everyone up. As it turns out the party that Greenspan threw to cheer up the US after 9/11 was a lot more expensive than the two wars. Thanks. Sounds plausable. In which case, our rates dropping was simply colatoral damage? What is to stop them using the same tactics, should they feel the need to wander into Iran? Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted February 1, 2006 Share Posted February 1, 2006 Nick Leeson could be Browns advisor and do a BETTER JOB!!! TB Quote Link to comment Share on other sites More sharing options...
CrashIsUnderWay Posted February 1, 2006 Share Posted February 1, 2006 Actually, I recommend TTRTR for Brown's next advisor. He has such a wonderful grasp on economics and finance generally that I'm sure he'll help 'Gordenron' prolong the bubble until he can weasel into No. 10. After all, teh Blairs have an antipodean @rselicker, why not Gordon Clown??? Quote Link to comment Share on other sites More sharing options...
Guest Riser Posted February 1, 2006 Share Posted February 1, 2006 He did cause all of this. The man is nobody’s fool. After 9/11 he knew the US was going to war, he knew public contentment was low, people were scared. The man in a stroke of genius allowed the economy to continue to grow to prevent mass depression sweeping the US (he threw a party), the current position was economically engineered by Greenspan to allow GWB to focus on the war. Greenspan essentially leant a huge volume of cash to US consumers so they would go out and spend, thus temporarily propping up the US economy and funding two wars, both financially and by averting dissent. These wars are coming to maturity and now. The US people will begin to pay for the wars, and also pay for Greenspan’s temporary party to cheer everyone up. As it turns out the party that Greenspan threw to cheer up the US after 9/11 was a lot more expensive than the two wars. Moneyweek made some good comments on Greenspan last week: Greenspan spikes the punch "The Feds role is to maintain financial discipline; to 'take away the punchbowl' before the party gets out of control. Greenspans approach has been differnt; he doesn't create discipline, instead he sneeks over and adds more Gin. As he leaves the office, bonus happy financiers are tap dancing on the tables on Wall Street, and in California real estate agents slap each other on the back after another year of double digit house price gains while Chinese manufactures cant remember having it so good." Quote Link to comment Share on other sites More sharing options...
?...! Posted February 1, 2006 Share Posted February 1, 2006 Thanks. Sounds plausable. In which case, our rates dropping was simply colatoral damage? What is to stop them using the same tactics, should they feel the need to wander into Iran? Colateral damage, very nicely put. 9/11 had the potential to grind everything to a halt, through fear and worry. Greenspan did the equivelent of a pub landlord giving everyone a beer to cheer them up. Then the following night he puts his prices up 10p. In your answer to Iran, they could do it again but probably will not, until the deficit has been paid off. The Fed is likely to increase rates further yet, up until the deficit begins to retract, and people in the US start saving again. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 1, 2006 Author Share Posted February 1, 2006 (edited) Apparently, Sir Alan agreed to be Gordon's advisor within 7 hours of walking away from the Fed: http://news.bbc.co.uk/1/hi/business/4669778.stm The announcement by Chancellor Gordon Brown comes less than seven hours after Mr Greenspan's near 19-year tenure as Federal Reserve chairman ended. The photo shows Gordon just getting up off the floor after a deep bow. I wonder what Al was thinking when he said: He has previously described Mr Brown as being "without peer amongst the world's economic policymakers". Edited February 1, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
bubbleturbo Posted February 1, 2006 Share Posted February 1, 2006 Colateral damage, very nicely put. Greenspan did the equivelent of a pub landlord giving everyone a beer to cheer them up. Then the following night he puts his prices up 10p. In your answer to Iran, they could do it again but probably will not, until the deficit has been paid off. The Fed is likely to increase rates further yet, up until the deficit begins to retract, and people in the US start saving again. Could they do it again though??? Bernanke and his helicopters??? Low long term rates. . . . If they did, property would take off, but we/they would quickly go into meltdown as the debts would become soooo large. Anyway, this arrangement just sounds like Gordon Clown trying to snuggle up and get some limelight. Greenbubble is only going to be "advising" on world economic change. I have seen there is already stuff floating about with Greenspan saying Brown is "the doggs danglies" and Brown lauding Greenbubble, etc, etc. Quote Link to comment Share on other sites More sharing options...
Catch22 Posted February 1, 2006 Share Posted February 1, 2006 (edited) As Our Armed Forces are run for the "exclusive" benifit of the White House it seems only right they also run our Treasury. The trouble with the USA is once you invite their military into your country THEY NEVER BLOODY LEAVE IT........wheres the boggy man? there there he is..... Where?...........on the Afghan/Pakistan border.................REALLY I thought he was stationed 20miles up the road at Menwith Hill Edited February 1, 2006 by Catch22 Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 1, 2006 Author Share Posted February 1, 2006 (edited) Statehood anyone? Could be worse, we could join the EU. Benefits: lower taxes, cheaper cars, cheaper everything else, no need for a visa to visit the mainland, put money spent on defense into the NHS etc. Drawbacks: loss of sovereignty, er, no we lost that to the EU sometime ago, lets see.......... Edited February 1, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
Guest Riser Posted February 1, 2006 Share Posted February 1, 2006 (edited) Brown was always going to blame the world economy and external forces for the collapse of the UK economy. Now he will be able to quote Greenspan, the worlds most 'respected' economist. Edited February 1, 2006 by Riser Quote Link to comment Share on other sites More sharing options...
?...! Posted February 1, 2006 Share Posted February 1, 2006 Could they do it again though??? Bernanke and his helicopters??? Low long term rates. . . . If they did, property would take off, but we/they would quickly go into meltdown as the debts would become soooo large. Anyway, this arrangement just sounds like Gordon Clown trying to snuggle up and get some limelight. Greenbubble is only going to be "advising" on world economic change. I have seen there is already stuff floating about with Greenspan saying Brown is "the doggs danglies" and Brown lauding Greenbubble, etc, etc. Low long term rates are complete fantasy. You can drop rates for a few years (throw a party) to cheer everyone up, but you either need to have a lot saved up beforehand or run up a big slate. The bigger the party the bigger the slate. Well at the time of 9/11 the US was still recovering from the dot com bubble, so this one is on the slate hence the US deficit. The Fed needs people to deposit money in the bank, rates at the Fed will go up. This will help stop frivolous credit purchases of cheap Chinese imports and help reign in the deficit. Bernanke will be a hero. Rejoice. If rates at the Fed go up, so will the dollar (watch those scrambling Asian banks) and the price of oil should fall, thus to quote someone last night “reducing America’s dependency on foreign oil”, at least in fiscal terms anyway. Quote Link to comment Share on other sites More sharing options...
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