{"id":30394,"date":"2018-01-31T20:05:46","date_gmt":"2018-02-01T01:05:46","guid":{"rendered":"http:\/\/olduvai.ca\/?p=30394"},"modified":"2018-01-31T20:05:46","modified_gmt":"2018-02-01T01:05:46","slug":"greenspan-warns-we-have-a-stock-market-bubble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=30394","title":{"rendered":"Greenspan Warns: “We Have A Stock Market Bubble”"},"content":{"rendered":"
\n

Greenspan Warns: “We Have A Stock Market Bubble”<\/span><\/a><\/h3>\n<\/div>\n
\n
\n
\n
\n

US equity markets stumbled notably as former Fed Chair Alan Greenspan told Bloomberg TV that “we have a stock market bubble.”<\/p>\n

\"\"<\/p>\n

Greenspan stuck to his usual discussion topics of low productivity and fiscal doomsday inevitability…<\/p>\n

“Productivity has been dead in the water for the past 10 years<\/strong>…<\/p>\n

I’ve never believed in the Phillips Curve…<\/p><\/blockquote>\n

Adding that “we’ve got to confront the budget deficit,” <\/em><\/strong>concluding “we’re dealing with a fiscally unstable long-term outlook.”<\/em><\/strong><\/p>\n

Something we have heard before (in 2016) <\/a>when Greenspan warned<\/p>\n

“Entitlements are crowding out savings, and hence capital investment.<\/strong> Capital investment is the critical issue in productivity growth, and productivity growth in turn is the crucial issue in economic growth. We’re running to a state of disaster unless we turn this around.<\/strong>“<\/em><\/p>\n

“This should be the central issue of the presidential debate. Unless and until we can rein in entitlements, which have been rising at a nine percent annual rate in the United States and comparable levels throughout the world<\/strong>, we are going to find that productivity is going to maintain a very low rate of increase”<\/em><\/p><\/blockquote>\n

Greenspan also doesn’t really view recession as the biggest problem right now, he is concerned (rightfully so) about the longer term problem of low economic growth and soaring entitlement growth.<\/p>\n

“I don’t think that’s our problem. Our problem is not recession which is a short-term economic problem, I think youhave a very profound long-term problem of economic growth at the time when in the Western world there is a very large migration from being a worker to being a recipient of social benefits<\/strong>“<\/em><\/p><\/blockquote>\n

But when Greenspan said the following…<\/p>\n

“There are two bubbles. We have a stock market bubble <\/strong>and a bond market bubble. At the end of the day, the bond bubble will be the big issue.<\/strong>“<\/em><\/p><\/blockquote>\n

Stocks began to stumble…<\/p>\n

<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Greenspan Warns: “We Have A Stock Market Bubble” US equity markets stumbled notably as former Fed Chair Alan Greenspan told Bloomberg TV that “we have a stock market bubble.” Greenspan stuck to his usual discussion topics of low productivity and fiscal doomsday inevitability… “Productivity has been dead in the water for the past 10 years… […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[952,124,303,10324,3650,4318],"class_list":["post-30394","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alan-greenspan","tag-central-banks","tag-fed","tag-phillips-curve","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30394"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30394\/revisions"}],"predecessor-version":[{"id":30395,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30394\/revisions\/30395"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}