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View Diary: Open Source Research Project: Alan Greenspan (284 comments)

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  •  Greenspan under Clinton / Greenspan under GOP (none)
    Are two completely diffrent people...

    I had always suspected that Greenspan's incessant rate hikes on the last 2 years of Clinton's term were aimed at making the economy "soft" before the 2000 election. It simply didn't made sense that the FED would be stepping on the brakes so hard, after nearly 60 years of keeping a hands off, let the market regulate itself approach. As fellow kossack   cavanaghjam notes:
    Greenspan's comments on irrational exuberance late in Clinton's term belied the tenet of market pricing theory, i.e. that the market knows best what price to assign. Of course no one.. wondered, if stock market extremes were his concern, why margin rates were not increased. That is the traditional Rx for overactive stock markets.

    Plus, such interference by the Fed should be against Greenspan's philosophy. He clearly raised interest rates to slow the general economy, not the stock market. I can't prove that he did so to help the GOP in the coming elections, but I can't prove that the sun will rise in the East tomorrow either

    Daily Kos :: Reid is correct: Greenspan is a Hack. - Did he try to bring Clinton down?

    In the future people will wonder why most didn't challenge Bush's excesses
    The truth? Complacency was easier

    by lawnorder on Fri Mar 04, 2005 at 01:27:32 PM PST

    [ Parent ]

    •  Seven times larger (none)
      Seven times larger
      An updated analysis by the Financial Markets Center shows that the Federal Reserve's Open Market Committee continues to raise interest rates significantly more in 1999-2000 than in previous presidential election cycles... Assessing the 16-month period leading up to presidential elections from 1955- 1956 to the present, the Center found:

      "The 1.74 percentage point increase in the FOMC-controlled federal funds rate between June 1999 and May 2000 is nearly seven times greater than the average change in the funds rate during comparable periods over the past 11 national election cycles."

      During the previous 11 presidential cycles, only once has the funds rate increased more during the June-to-May period that precedes the [2000] election. That increase occurred in 1967-1968, when inflation was rising rapidly at the height of the Vietnam War.

      In the future people will wonder why most didn't challenge Bush's excesses
      The truth? Complacency was easier

      by lawnorder on Fri Mar 04, 2005 at 01:29:05 PM PST

      [ Parent ]

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