Bear Den 2008
BEAR DEN 2008Last entry: 1.24.08
Where it all started…
It is no secret that Alan Greenspan is at the root of what we are seeing today. And it shouldn’t be too difficult to figure out why we have an academician at the seat of the FED. No seat-of-the-pants economist would have taken over the hand that Greenspan dealt on his way out.
Another player in this scenario, Treasury Secretary Hank Paulson, the former very successful head of Goldman Sachs, was acclaimed by Business Week in June 2006 with a cover titled “Mr. Risk Comes to Washington”. With leverage the Achilles heel in the current situation he is probably the right guy to figure it out but he is coming very late to this mix, maybe too late.
And then we cannot forget the Bush Administration. Wars always work well to stimulate GNP, but don’t work too well with the country’s balance sheet.