Wednesday, April 06, 2005

Pollyanna Greenspan Can't Convince Consumers

As consumer confidence declines, Greenspan is puzzled. In interviews, consumers say they must cut back spending because high energy costs are now very troublesome. This is where the Greenspan puzzle lies: his joyous assurances to investors that energy costs will go down because Europe is going to use less oil is sheer insanity because...Europe AND America will be using less oil thanks to the coming recession! So, is it time to blow a wad on Wall Street? Just before a nasty recession really begins?

Understanding Greenspan is simple. He went to Yale. He is a member of the secretive Skull and Bones just like Bush. He is a Republican. He loved Ayn Rand.

In other words, he is a man you can't trust.

During the golden Clinton years, he was the gloomiest man on earth. His woe was so great, he made bloodhounds look happy. "Irrational exuberance" was one memorable phrase. The more Clinton balanced the budget, the gloomier Greenspan became. When we finally stopped running the government in the red, Greenspan nearly died from grief.

Now that we are back to "normal", running huge deficits, wild spending sprees, irresponsible military adventures, collapsing dollar, high energy prices, Greenspan is now a happy man. Every day, he rises and sings like Mr. Rogers on PBS. This week's news made him so happy, it was infectuous to all who shared the room with him.

Alas, no American consumers were allowed into this Kool Aid soiree. Balancing check books, looking at credit cards at the limit, filling gas tanks and then sucking in breath in horror, the American consumer is very unhappy and extremely scared.

Maybe Greenspan can cheer them up.

He can't cheer me up.

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