The Stock Market As Monetary Policy Junkie – Evergreen Gavekal

The Stock Market As Monetary Policy Junkie by Evergreen Gavekal

CHAIRMAN WAXMAN: “You found a flaw?”
MR. GREENSPAN: “I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.”
CHAIRMAN WAXMAN: “In other words, you found that your view of the world, your ideology, was not right, it was not working.”
MR. GREENSPAN: “Precisely. That’s precisely the reason I was shocked, because I had been going for 40 years or more with very considerable evidence that it was working exceptionally well.”
– Congressional Hearing on The Financial Crisis and the Role of Federal Regulators. October 23, 2008, as relayed by Mike O’Rourke...