Brother, Can You Spare a Trillion?
Greenspan's Financial Conflict of Interest
- Former Federal Reserve Chairman Alan Greenspan, at a Washington meeting of Brookings Papers on Economic Activity, implied that non-bubbles are worse than financial bubbles by asserting, "Fear as a driver, which is going on today, is far more potent than euphoria."
- He also claimed that today's market behavior is "identical" to 1987's behavior (when a rookie Greenspan slashed the benchmark Fed funds interest rate by more the double the usual 25-basis-point cut and began to earn his reputation for the "Greenspan put" to prop up the stock market).
- Both of Greenspan's arguments suggest that today's Federal Reserve should bailout the banks and Wall Street with more inflationary debt by cutting the benchmark Fed funds interest rate.
- Deutsche Bank would benefit significantly from a Fed bailout: "Deutsche Bank May Be Worst Hit by Rout, JPMorgan Says (Update3)" (Bloomberg).
- Greenspan works for Deutsche Bank: "Greenspan Hired as Consultant for Deutsche Bank" (MoneyNews).
- Greenspan owned assets of at least $4.2 million as of 2005.