Sell, Sell, Sell: Greenspan Is Bullish On Stocks

The Dow is up well over 100% since Barack Obama took office. Nowadays, there is constant hand-wringing among financial types, worries that QE and other sustained policies have created a bubble in equities. In other words, there’s a sell-off coming, and it’s going to be non-trivial.

Enter Alan Greenspan, whose economic prognostications over the last decade have been almost uniformly, 100%, completely and utterly wrong. Alan says that stocks, even at these stratospheric levels, are a roaring buy:

“In a sense, we are actually at relatively low stock prices,” Greenspan, who guided the central bank for more than 18 years, said in an interview with Sara Eisen on Bloomberg Television today. “So-called equity premiums are still at a very high level, and that means that the momentum of the market is still ultimately up.”

“In a sense”? What everloving “sense” would that be, Alan? The same sense that inspired you to these immortal words, back in 2004?

“American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.”

Or is it the sense that, in the wake of the financial Waterloo of 2008, produced this chestnut?

“I still do not fully understand why it happened.”

You make the call. Are stocks ready to slide, or are we at the new norm? Will fed relaxation of supply policies (which is coming, although not quite yet) tank the market, or is it composed of a new kind of mathematical teflon?

We’ll see. Alan likes it, so.

By: rhb

Rob is a NYC-based Internet entrepreneur. He's also a businessman and job creator (wait: doesn't demand create jobs?) who understands the sense, and the eventual predominance, of the progressive agenda.