The Old Liar says that selloff is international problem not a Domestic one

Alan Greenspan, you know the guy that got us into this mess, testified today that this sell off is normal for a recovery and that it more about the international problems than it is ours. Nice timing Alan. They pulled you out of moth balls just as the economy ,in the US, is starting to roll over. This is telling the public not to worry hold on to you stocks it is going to be ok this is just a normal sell off in a normal recovery.

Here is the article:

Greenspan: Recent Decline 'Typical' of Recovery


Former Federal Reserve Chairman Alan Greenspan said that the recent stock market decline is “typical” of a recovery, and that international instability has more to do with the recent decline than problems in the United States.

“What we’re looking at is an invisible wall, which we’ve run into here. Which, essentially, as far as I can see, is a typical pause that occurs in an economic recovery,” Greenspan said in an interview with CNBC. “Ordinarily we’re saying that the stock market is driven by economic events, I think it’s more in the reverse.”

“I will grant you that this is not a normal economic recovery. We’ve just come out of what I believe is the most extraordinary and virulent global financial crisis that the world has ever seen,” he said.

“This recent decline is more international than it is a domestic affair,” he said, adding that “there is an inherent instability in the euro system.”

"I don't know where the end game is. Something has got give here. One possibility is there are fewer members of the European Monetary Unit," said Greenspan, who was Federal Reserve chairman for 19 years before retiring in 2006.

In the US, the lack of hiring is due to businesses being shocked by the collapse and dramatically pulling back on spending, Greenspan said.

“There is clearly a short term fear factor involved,” he said. “People don’t want to hire because they’re terribly concerned they have to let them go. The average work week has been going up which is another way of telling you that they’re more intensively using what they got before they’re hiring.”

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I will say it again the US market is selling off because our economy is in trouble. Take a look at the recent numbers. They dusted off Alan to give us another expert besides Bernanke to reassure us.

Remember when this sell off started? That was the 1000 point day. They still have not figured out what caused it. Like I said it is the economy stupid.

The market is breaking down and they bring on Alan because the public is getting concerned. We are going to have rallies all the way down but they will not have legs.


Mikey