Alan Greenspan, the man who admitted he didn’t see the prime mortgage crisis coming, now has a new theory. He believes that the economy is on hold and will be controlled by the performance of the stock market. The stock market must be taking its own pause since it has dropped by some 10% during the past quarter, the biggest drop since 2008. Consumer confidence levels have also dropped according to a report on NBC news last evening.
According to one news article Alan Greenspan was quoted as saying:
“While ordinarily we’re seeing the stock market driven by economic events, I think it’s more the reverse,”Greenspan said in an interview today on CNBC. “What we do know is stock prices are a leading indicator.”
Oh goody. Our entire economic system is dependent on Wall Street! Tomorrow I am going to alter my personal economic forecast and buy more gold and silver. Thanks Mr. Greenspan for the heads up.