There really ought to be a law against a former Fed chair making public pronouncements on the market or the economy. This is especially that case for Alan Greenspan whose words were watched so carefully for so long and, consequently, who still has the power to shake and shape events. He did it again last night.
The weight of Greenspan's words continues to be significant. He has much more power to turn things in one direction or another than he should. He no longer has access to the same data or collaborative deliberations -- and he should keep his mouth shut.
Last night in DC, he equated the current turmoil to that of 1987 and 1999, and even back to the back panic of 1907. He called the conditions in many ways identical and fueled concerns if not panic about the state of the economy at this moment.
He may be right, but he may also be wrong. The uncomfortable fact is that he may be right more often than others simply because his words can precipitate actions consistent with his predictions. He seems to exercise little restraint. We need a law to muzzle him.
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