Quote:
Originally posted by Astrocloud
But all of this means nothing. You said that Greenspan said otherwise. Prove it. You can't -and if you bothered to read Marty Feldstein's article you would see that he is following what the Fed has been doing and concludes "the Fed has gone unusually far to provide a margin of safety."
Ever heard the expression that actions speak louder than words? Greenspan's actions at the Fed have already spoken... In other words: Why would Greenspan have to provide a margin of safety if everything is as rosey as you think it is?
Oh yes, and Alan Greenspan says it is.
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If you'd like to look at actions then please do. Greenspan has always acted in a very cautious way (even during the "boom years" of the last decade). Feldstein's comment that the Fed has "gone unusually far to provide a margin of safety" is ridiculous as that has ALWAYS been a hallmark of Greenspan. His comments are always designed to be on the cautious side.
Have you seen Greenspan say that we need more stimulus? No. He pointedly alludes to low interest rates, home refinancings and cashouts, as well as tax cuts as sources of yet more consumer spending. The policies he has enacted are meant to temper the possibility that the Fed will be caught without the ability to impact the economy through monetary policy. His biggest concern is and always has been falling behind in the fight against keeping a stable economy growing in the 3 to 3.5% range.
And smooth, I don't know what thread you are reading but I have written quite extensively about the mechanics of unemployment, consumer spending, and a number of other issues throughout this thread. The sound bite mentality is obviously not coming from me.
To point out one SMALL piece of unemployment and ignore industry changes that are occuring is both naive and misleading.
And yes, I do claim to be an economist. Whether you choose to believe it or not I don't care. I don't need to quote the thinking of one or two "leading" economists because I have a firm grasp of economic principle.
From the FOMC in September:
"The Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the intermeeting period confirms that spending is firming, although the labor market has been weakening. Business pricing power and increases in core consumer prices remain muted."
This is Greenspanspeak for "the economy is growing". The "economic activity" cited in this statement is growth.