Alan Greenspan: ‘The Stock Market Is Great’, But The Economy Feels Like In ‘The Late Stages Of The Great Depression’

Luckily for investors the stock market has nothing to do with the economy, i.e. reality,¬†anymore, …

… until it does (= when Rothschild will press the sell button).


Greenspan: “The Stock Market Is Great”, But The Economy Feels Like In “The Late Stages Of The Great Depression” (ZeroHedge, Feb 26, 2015):

While conflicting economic data leaves hope for both buills and bears, Alan Greenspan warns that, unlike Yellen, “US economic growth is not strong.” He then slays another pillar – suggesting the exuberant job growth is anything but (as he focuses on weak productivity as he pinpoints entitlements as “crowding out capital investment” in America. The maestro then breaks the golden rule of central bankers and explains how The Fed was, in fact, the main driver of the P/E multiple expansion in stocks; and when asked if this ends as badly as last time? He concludes “It depends…When real interest rates start to move up, that’s when the crisis could hit.” The interview is somewhat stunning in its honesty (for a central banker) as he warns global “effective demand is extraordinarily weak – tantamount to the late stages of the great depression.”

Some other excerpts…

“Lower long-term rates is not a conundrum, its an indication of how weak global economic growth is.”

“effective demand is extraordinarily weak – tantamount to the late stages of the great depression.”

“Monetary policy is not responsible for economic weakness – it’s a fiscal issue.”

The Fed is responsible for the inflation of the stock market

“Almost all the problems are due to a lack of long-term capital investment” – reflecting perfectly on our detailed explanations of company’s preference for shareholder enhancement through buybacks rather than investing in the corporate growth of the economy… “nobody wants to invest in the long-term because nobody knows what is going to happen.”


And finally:

“Stock market is great – the economy is not.”

You are right Alan…

S&P - US Macro

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We suspect this will be the last time Greenspan is invited on The Truth Channel.

3 thoughts on “Alan Greenspan: ‘The Stock Market Is Great’, But The Economy Feels Like In ‘The Late Stages Of The Great Depression’

  1. Late stages of the Great Depression? Is he referring to 1933, the absolute worst part for more than 40% of the population? By 1939, jobs started abounding as government contracts for the upcoming war put millions to work.

    My daughter’s nanny had been in the Dustbowl, a government job working in an airplane factory was the beginning of her recover. She left her husband, who never recovered from the 1920, and would not look at anything to do with truth, took her five daughters and went to work for Douglas Aircraft on an assembly line.

    All today’s government contracts go to a few greedy gut corporations, nothing comes into the real economy, which is slipping terribly. The standard of living for millions has been downgraded sharply, and it is getting worse.

    Too many throw away people, and nothing in the corporate media about any truth.

  2. Stanley, when Greenspan was FED chair, the world stopped to listen to his remarks, including me. The day I heard him promoting ARM mortgages, saying consumers could save thousands on the low interest rates was it for me. Who in their right mind would put their monthly mortgage payments on such unstable grounds as sharp increases in monthly payments? I have heard from people who have told me their mortgages have tripled in one month in the last few months, and the rates are climbing, the fix is in.

    Regardless of the lies told on corporate media, costs for individuals to use credit is skyrocketing, greedy guts are now targeting in for the final destruction of the US middle class…………millions will soon be unable to afford their homes.

    I have been saying for the last year or so that the next feeding frenzy would engulf the wannabe greedy guts, those who are mired in real estate debt on multiple properties waiting vainly for the “flip this house” springtime market to resume. Such people refuse to look at reality…..those days are gone forever.
    They have been stretched to the limit to keep up their facade……..and they face a tough future. It isn’t like the old days.

    One need only look at the rising mortgage rates in the face of endless reports that existing home markets are not quite meeting their projections (lies) to see the story.

    This is what happens when greedy corporations are given power over government, both sides are diametrically opposed, one set to serve social needs, the other to grab everything in sight. The result…… need only look at Japan. One corporation, TEPCO, controls 96% of their power grid……so nobody is allowed to say a word. They don’t care about the people at all……

    None of the billions the US spends go into the real economy. The middle class has been effectively destroyed. Shopping malls have empty storefronts but they will accept no tenant but one of the accepted corporation names one sees everywhere.

    The US has become an economic and social wasteland. Debt and corruption has destroyed every single fiber of decency in our system……..greedy guts investigate themselves when caught in blatant legal violations… has become a nightmare. Fools are in power, and there is no longer any way to rid ourselves of them. On every branch of the system, the signs of ruin has set in.

    I am glad I will soon be out of the whole mess, all the signs of deterioration have become solid aspects of the US economy and leadership. I am ready for Hospice, and I feel many things about that, but when I look at what my country has become, I feel a sense of relief I will soon be gone.

    The fool who stood up in congress and blamed Russia for the drought that is destroying the crops all over this land is now head of environmental studies…….is that madness or not?

    I cannot bear to look at it.

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