Tuesday, December 01, 2009
When reading Jeremy Grantham's insightful commentary on what makes the financial world go round, sometimes you have to wonder what he would name his blog, if he had one, as there are few who bash former Fed chairman Alan Greenspan as well as he does.
From this Paul Farrel piece at MarketWatch comes another Grantham-Greenspan gem.
14. Finally, Grantham's irrational 'old nemesis, Greenspan'The first 13 points of his 14-point analysis of what's wrong in the world, in general, and at the highest levels of U.S. government, in particular, are also worth a look.
He gets "the title of Maestro in the U.S. and is knighted by the Queen ... for thoroughly demolishing the integrity of the U.S. financial system. He overtly ignored the great threat of bubbles in asset classes and, in fact, encouraged them. He Ayn Rand-ishly facilitated the progressive dismantling of governmental restrictions on financial behavior, he deliberately kept real interest rates at zero for years, etc., etc., etc. You have heard it before. ... In the good old days, he would have been set in the village stocks, and not the kind you buy and sell. And I would have been right there, Alan, with very ripe tomatoes."
My guess is that, by the end of Bernanke's second term as Fed chief, Grantham will have completely forgotten about the Maestro, instead spending all his energy on Greenspan's "most passionate cheerleader" who is now "completely clueless", his reappointment seen as akin to "reappointing the Titanic's captain" (see point #2).