1.28.2006

Greenspan: worst Fed chief ever

Bill Fleckenstein:
So, the fallout from the housing boom, the unfinished business from the stock boom and all the derivatives he's championed for his beloved deregulated financial system will combine to hit with full force somewhere down the road. By then, of course, Greenspan will be long gone. He, as well as everyone else who's incapable of understanding what really happened, will be blaming our problems on the next Fed chairman. I have no sympathy for Ben Bernanke. But we must understand what actually took place and not let this arrogant buffoon Greenspan get away with his attempt to rewrite history.

Greenspan really is terrible. He facilitated the stock market bubble. Then, to postpone the pain, he created the greatest housing bubble in history. The housing bubble bursting will be painful.

We are approaching an era of stagflation. Inflation will rise as the deflationary effect of cheap imports subsides. Interest rates will rise as Asia decides to stop buying Treasury bonds that the Fed is determined to devalue. Sell your bonds and buy gold.

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