Greenspan: Market Turmoil Is Similar To 1987 and 1998

[Purveyor]

Source: CNBC

Alan Greenspan, once the world's top central banker, said on Friday ongoing credit turmoil
reminded him of the 1987 and 1998 market crises as data showed U.S. firms cut 4,000 jobs last month, the first fall in four years.

"What we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock market crash of 1987," the Wall Street Journal quoted the
former U.S. Federal Reserve Chairman as saying.

Hedge fund Long-Term Capital Management controlled $100 billion of assets in 1998 but collapsed in the wake of a Russian debt crisis, wreaking havoc in many derivatives markets. Greenspan took over as Fed chief shortly before the Dow Jones Industrial Average slumped 23% in a day in October 1987.

The bleak U.S. jobs report confounded forecasts that hiring would keep rising and covered a period before the worst of the credit turmoil began to bite. Many financial services firms hit
by mortgage debt problems have recently announced layoffs.



Read more: http://www.cnbc.com/id/20635698

[nadinbrzezinski]

1. Mr Greenspan why do I see paralells

in the liquidity crisis and its depth to oh anothe crash?

Oh I know, that one is taboo in your circles

By the way... 1987 was the height of reaganomics, trickle down... just as we are in the height of that stupidity as well

Just as that other crash

What do these three have in common?

Republican policies and leaders... when will the people, yes even those in wall street, learn?

[Zensea]

2. He may be right but I wish he would STFU

Seeing as how people still listen to Greenspan's words like they are gospel.
These kind of comments are likely to make things worse in the short term at least.

[Acadia Blue]

3. He did everything Bush wanted. Everything and look at the mess.