“He should know, he started it.”
So true, and it’s increasingly amazing that no one talks about all this. Greenspan, pressured by Clinton, flooded the marketplace with printing press dollars to artificially and dangerously inflate the stock market, housing values, access to credit and perceived ‘wealth’, in a successful attempt to keep the populace from properly scrutinizing Clinton’s administration and his many scandals. The stock market shot up from 3,000 to 11,000 and there was no genuine quantum leap in productivity behind the leap, it was phony from minute one. And now, we pay a price, and we’re going to pay a big one.
It is even worse. Our trade deficit widened because or production did not keep up with our consumption. We imported more and more from abroad, swapping greenbacks for wine, cheese, ferraris, and norwegian moose meat.
The counterparties to those trades must feel a bit sick now, sort of like someone who thought he was rich only to discover that the matress is the attic was stuffed with Confederate dollars.