Greenspan Admits the Fed was Wrong for 40 years?

[£10kLoser]

Just when you though things couldn't get any worse or more bizare, Greenspan admits that 'the financial model' he'd been using for 40 years was wrong!

After talking the market up yesterday, later analysis proved less rosy. Asian markets fell nearly 10%, the FTSE is down 250 and DOW futures down over 500. Oil fell almost 10% in a few hours back to early 2007 levels, gold is way below $700 - back to 2006 levels.

Now, the Federal Reserve Bank is a private organisation not controlled by the government and I can't believe that they would admit they are wrong (OK, Greenspan is no longer chairman) unless it suited their quest for more power and control. This lends fuel to the speculation that this is an engineered collapse.

In Europe it looks like the dollar is fairly steady (against the euro) but it has collapsed against the yen. It seems entirely possible that rumours of a bankrupt US may be true and that it was bailed out by a few trillion of Japan's gold reserves.

Whatever, things are surreal and totally unpredictable. My guess (having said it's totally unpredictable) is that things will recover in a few months only to collapse big time in a few years.

 

[tomorton]

I don't see evidence this crash was engineered, though I am hearing lots of economists saying it was both predictable but also inevitable. It is part of every Government, Central Bank, Diplomatic Service and Civil Service duty to always moderate the outcomes of anything that happens in their domain so that they extract maximum freedom of action, minimum responsibility, from any events. This can sometimes be so efficient and callous that it looks like events have been manipulated to produce such an outcome. I include wars in t his.

 

[cryten]

YouTube - The Feds 1 of 5

YouTube - The Feds 2 of 5

YouTube - The Feds 3 of 5

 

[Rhody Trader]

In Europe it looks like the dollar is fairly steady (against the euro) but it has collapsed against the yen. It seems entirely possible that rumours of a bankrupt US may be true and that it was bailed out by a few trillion of Japan's gold reserves.

The US cannot go bankrupt for the simple fact that the Treasury can print up as many dollars as they like (albeit with an inflationary implication). The Yen is getting pushed higher because there's a massive inflow back in reversing the carry trade. Gold reserves have nothing to do with any of this.

 

[£10kLoser]

You have access to what is really going on? You make the statements as if you really know what you're talking about! I doubt whether US senators really know what the whole truth is.

Printing more dollars is of little use if other countries refuse to accept debt payments to be made in dollars. So, of course it is theoretically possible for the US to be bankrupt. G7 are talking about dropping the dollar as the trading standard and introducing a new currency agreeable to Russia and China - the dollar may be in for hard times.

All this sounds far fetched but if anyone had said the DOW would be under 8,000 a few months ago, who would have believed that?

Times they are a'changing...

 

[Rhody Trader]

You have access to what is really going on? You make the statements as if you really know what you're talking about! I doubt whether US senators really know what the whole truth is.

I don't just doubt senators really know the truth, I'm sure of it! :cheesy:

Printing more dollars is of little use if other countries refuse to accept debt payments to be made in dollars. So, of course it is theoretically possible for the US to be bankrupt.

If they are holding dollar denominated debt instruments they have no choice in the matter. Accept the dollars or don't get paid at all. And if it's a question of the US having to pay bills in non-dollar currencies, the gov't can always print up enough dollars to convert to whatever currency is required.

I'm definitely not saying things with the US can't get very difficult. They certainly can. Governments cannot go bankrupt, though. They can default on loans, as we've seen, but so long as they control the monetary printing press and receive taxes they won't go bankrupt. Put everyone on the gold standard, though, and things take on a whole different perspective.

G7 are talking about dropping the dollar as the trading standard and introducing a new currency agreeable to Russia and China - the dollar may be in for hard times.

This sort of talk has been going on for as long as I can remember. Wake me when it happens. It doesn't really matter anyway. Trade will take place in whatever currency makes sense for the given transaction. So long as the US economy remains the largest, there will continue be a high percentage of trade done in dollars.

All this sounds far fetched but if anyone had said the DOW would be under 8,000 a few months ago, who would have believed that?

Actually, none of it sounds farfetched.

Times they are a'changing...

They always do.

 

[N Rothschild]

i truly believe in all the conspiracy theory of the fed, (as you will see in my sig). this has defiantly been an engineered collapse

 

[kr81]

It is highly improbable if not impossible for the crisis at hand to have been engineered. The impetus of this whole ordeal was sub-prime lending practices. The blame for such irresponsible mortgages lay at the feet of elected officials (both parties), appointed officials (like Greenspan), finance companies, mortgage brokers, the media and most of all barrowers.

Any semi-honest and objective person could see that real estate prices were careening higher and higher. It was only logical to have questioned, why are prices climbing so high and so fast. This artificial prosperity in the real estate market was being driven by unsustainable means, a new pool of unqualified consumers that could not indefinitely sustain home appreciation. Sooner or later those home prices were going to have exhausted the pool of buyers financial ability. The collapse was inevitable.

A financially engineered break down of this breadth would have required a conspiracy of all the participants I listed above. I want to especially point out the medias contribution because I have not heard any body point out there responsibility in this matter. I am gravely disappointed with their role. Its my observation that the media has long ago compromised its journalistic integrity. It is so politically polarized and bent on advancing its own agenda that it has lost its way and greatest value. Like the American people it could not see the forest through the trees.

Was this a conspiracy? No way. This is stupidity on a national and global level. It took every class of Americans to check out their common sense at the door to pull this off. It is time we wake up from our stuppor, take responsibility and renew our national integrity.

 

[cryten]

It is highly improbable if not impossible for the crisis at hand to have been engineered. The impetus of this whole ordeal was sub-prime lending practices. The blame for such irresponsible mortgages lay at the feet of elected officials (both parties), appointed officials (like Greenspan), finance companies, mortgage brokers, the media and most of all barrowers.

Any semi-honest and objective person could see that real estate prices were careening higher and higher. It was only logical to have questioned, why are prices climbing so high and so fast. This artificial prosperity in the real estate market was being driven by unsustainable means, a new pool of unqualified consumers that could not indefinitely sustain home appreciation. Sooner or later those home prices were going to have exhausted the pool of buyers financial ability. The collapse was inevitable.

A financially engineered break down of this breadth would have required a conspiracy of all the participants I listed above. I want to especially point out the medias contribution because I have not heard any body point out there responsibility in this matter. I am gravely disappointed with their role. Its my observation that the media has long ago compromised its journalistic integrity. It is so politically polarized and bent on advancing its own agenda that it has lost its way and greatest value. Like the American people it could not see the forest through the trees.

Was this a conspiracy? No way. This is stupidity on a national and global level. It took every class of Americans to check out their common sense at the door to pull this off. It is time we wake up from our stuppor, take responsibility and renew our national integrity.

Click on the link to listen to an mp3 by Andy Gauss someone who knows what their on about!, You will see this is not about sub prime!

http://www.projectcamelot.net/andy_gauss.mp3

 

[rols]

Just when you though things couldn't get any worse or more bizare, Greenspan admits that 'the financial model' he'd been using for 40 years was wrong!

After talking the market up yesterday, later analysis proved less rosy. Asian markets fell nearly 10%, the FTSE is down 250 and DOW futures down over 500. Oil fell almost 10% in a few hours back to early 2007 levels, gold is way below $700 - back to 2006 levels.

Now, the Federal Reserve Bank is a private organisation not controlled by the government and I can't believe that they would admit they are wrong (OK, Greenspan is no longer chairman) unless it suited their quest for more power and control. This lends fuel to the speculation that this is an engineered collapse.

In Europe it looks like the dollar is fairly steady (against the euro) but it has collapsed against the yen. It seems entirely possible that rumours of a bankrupt US may be true and that it was bailed out by a few trillion of Japan's gold reserves.

Whatever, things are surreal and totally unpredictable. My guess (having said it's totally unpredictable) is that things will recover in a few months only to collapse big time in a few years.

We ain't seen nothing yet. It's gonna be like Argentina was a few years back - the middle classes unable to get any money out of frozen accounts, no jobs, forced to leave their nice homes for trailers.

This was written in 2001
Safe Haven | The Bubble Implosion: Enron, Argentina…who's next?

Can the US Learn from Argentina

It's too late to buy up Gold now - because there isn't any for sale - all the dealers have run out.

I also urge you all to enroll in Mandarin classes.

To prepare to await our new masters instructions.

Have a nice weekend.....

 

[afrausin]

Just when you though things couldn't get any worse or more bizare, Greenspan admits that 'the financial model' he'd been using for 40 years was wrong!

After talking the market up yesterday, later analysis proved less rosy. Asian markets fell nearly 10%, the FTSE is down 250 and DOW futures down over 500. Oil fell almost 10% in a few hours back to early 2007 levels, gold is way below $700 - back to 2006 levels.

Now, the Federal Reserve Bank is a private organisation not controlled by the government and I can't believe that they would admit they are wrong (OK, Greenspan is no longer chairman) unless it suited their quest for more power and control. This lends fuel to the speculation that this is an engineered collapse.

In Europe it looks like the dollar is fairly steady (against the euro) but it has collapsed against the yen. It seems entirely possible that rumours of a bankrupt US may be true and that it was bailed out by a few trillion of Japan's gold reserves.

Whatever, things are surreal and totally unpredictable. My guess (having said it's totally unpredictable) is that things will recover in a few months only to collapse big time in a few years.

You think you could post the link of the article?
Thanks!
Augusto

 

[£10kLoser]

What article? I wrote it.

While I'm here I would concur that this crisis was not caused by sub-prime mortgages but mostly by inter-bank lending of far more money than was available. In addition, the US owes trillions abroad and can't pay it.

 

[cryten]

What article? I wrote it.

While I'm here I would concur that this crisis was not caused by sub-prime mortgages but mostly by inter-bank lending of far more money than was available. In addition, the US owes trillions abroad and can't pay it.

Yup and if you listen to the mp3 I posted, this "bailout" could pay off every sub prime mortgage that went into arrears and still have billions left over! This is a cover up and I guess i shouldn't be shocked the newspapers are indulging this farce.