Monday, September 24, 2007

Alan Greenspan – Epic Mismanagement

James Cramer nails down the colossal ‘cheating’ and ‘incompetence’ by Alan Greenspan in his short article in New York Magazine.
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Whichever way one looks at it, Greenspan essentially mismanaged American Economy so that he could keep his legacy intact. Robert Novak also wonders how ‘sucker’ Greenspan had been that he could essentially take all Presidents on ride.
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Failure to control ‘margin rates’ which propped up Dot Com boom and eventual burst; and failure to control ‘teaser mortgage’ rates (in fact he actively exhorted public to take 1 and 3 year ARM loans!) resulted in total mismanagement of American Economy. So when he claims in his book that eventually increasing global inflation in next 1 to 2 decades will result in higher interest rates and American economy can grow at the most 2.5% annually (0.5% due to population increase and 2.0% at the most by productivity increase); it is hard to take these opinions at face value however those are well reasoned. Well, one just wonders that indeed American Economy will falter if mismanagement of epic proportion is undertaken by like of Greenspan and Bush.

Umesh Patil
Cupertino CA, 95014
September 24, 2007.

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