Alan Greenspan, 84 years old, and still defending his role as chairman of the Fed from 1987 to 2006, made a case for his relevance once again.
Greenspan told “Meet The Press” that “if stock prices start continuing down, I would get very concerned.” Greenspan believes equities are a reasonable proxy for the market’s view of the near-term future of the economy. He added his impression that the recovery “is going to be a slow, trudging thing.”
Greenspan’s monetary policy at the Fed is still viewed by some as one of the reasons for the housing bubble. He argues in return that the quick increase in home prices was due to lax lending standards by banks which eventually caused the recession. Greenpan has been on the outside looking in as his predecessor Paul Volcker has become one of Obama’s most important economic advisors.
Greenspan can still get a spot on the Sunday morning talk shows which are watched by very few people. Getting anyone of buy his views is another matter.
Douglas A. McIntyre
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