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Subject:  What a Jerk! Date:  9/7/2007  5:40 PM
Author:  BuildMWell Number:  26857 of 41897

Today, the market dropped like a stone to a large degree because Alan Greenspan ran off at the mouth. He needs to learn to keep his trap shut because his thoughts are always used by Wall Street to over-sell the worst case scenario. Let's take a look at the financial guru's ideas:

"The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987, I suspect what we saw in the land-boom collapse of 1837 and certainly [the bank panic of] 1907," Mr. Greenspan told a group of academic economists in Washington, D.C., last night at an event organized by the Brookings Papers on Economic Activity, an academic journal." - Alan Greenspan

For the whole story you may go to:

http://money.aol.com/news/articles/_a/greenspan-likens-market-turmoil-to-1987/20070907063909990001

Here is what I think. I agree 100% with that Mr. Greenspan said. He is absolutely correct, the behavior of the market is reminiscent of all of those previous catastrophes, but is it really the same? I say it is very different in almost every way...except for the silly volatility. Today is another example of the same thing and I blame it on Greenspan's mouth. The whole thing is gamesmanship by Wall Street, not the failure of the underlying strengths of our economy or over-valuation by the brokers.

What Greenspan is looking at is the volatility of the markets, not the low unemployment, the 50 year low Treasury Note rates, low inflation, high corporate profits/earnings nor the underlying growth in the economy as a whole. Nope, he just looked at the volatility and said he is reminded of the land-boom collapse of 1837 and the bank panic of 1907. What a crock!

Please do yourself a favor and read up on the 1837 crash and the panic of 1907...what we are seeing today is nothing like either of them except for the volatility stirred up on Wall Street by over-selling any story. This particular one is using Greenspan a