Did Current Federal Reserve Chairman Bernanke B Slap Alan Greenspan Today?

Question

Bernanke does not see the same inflation boogey man as Greenspan.Current chairman Bernanke see the glass as half full and the senile old Greenspan as usual see the glass half empty. Al must be a liberal. He never met a stock rally he could not kill.

Answer 1

Actually, I think what you mean is that Bernanke doesn't see the same economic growth downturn as Greenspan does. Greenspan said that there is potential for a recession by year end. Bernanke has said that he feels that the economy and markets are still doing well. This is why he has kept interest rates steady, since he does not feel that the economy needs a boost and he is still a bit worried he will need to hike the rates again to curb any inflation threat that may pop up. Greenspan did not address inflation, and Bernanke still believes that inflation could be a danger, although it has been largely mitigated by the interest rate increases instituted by Greenspan and continued by Bernanke.

Answer 2

I remember the "discussions" back & forth about Greenspan & his predecessor. I was one of those that believed Greenspan couldn't cut the mustard. Guess what? It looks like I was wrong. Mortgage rates have dropped. The rate of inflation is much less than it was then. Unemployment has remained relatively steady during his tenure. This in spite of 9/11, the stock market crash & rebound, record consumer spending & credit, & record deficit spending. The Fed controls the money supply through interest rates. In case you hadn't noticed, he has been very slow & cautious in either raising or lowering them.

Because of all the in-spite -ofs I listed above, recession will happen sooner or later. The depth & length of it depends in part how the Fed reacts to changing conditions.

I remember the recession of the late 70s. Inflation & unemployment were both in the double digits. This was something that had never happened before. Welfare caseloads went up drastically by those whose unemployment insurance ran out & who were not counted in the unemployment figures.

Before we can realistically compare the two men, we need to see a track record for Bernenke first. His appointment by Bush does not bode well, but I am willing to wait & see.

Answer 3

It is clear the economy is on a downturn... Alot of people are losing their jobs, defaulting on their mortgages and jobs are being outsourced to China for cheap labor... Company profits will slow down and the market will follow...