Greenspan Fears "False Dawn" In US Economy, Warns Of "Equity Correction At Some Point"

Equity bulls should be exuberant. The last time Alan Greenspan warned of exuberance and potential for a correction, stocks soared for a few more years. While Yellen’s stock-picking skills have been questioned in recent days, Greenspan has once again weighed in:

  • *GREENSPAN SAYS ‘KEY QUESTION’ IS WHETHER U.S. FACES FALSE DAWN
  • *GREENSPAN PREDICTS AT SOME POINT EQUITIES TO HAVE CORRECTION

Although Greenspan declined to second-guess the Fed, he sees a problem moving toward “normalized” policy for his descendants.

 

Speaking on Bloomberg TV, Greenspan has lots to say…

  • *GREENSPAN SAYS `OPEN QUESTION’ WHETHER INFLATION WILL SURPRISE
  • *GREENSPAN DECLINES TO `SECOND GUESS THE FED’
  • *GREENSPAN SEES `A LOT OF UNCERTAINTY’ ON ECONOMY
  • *GREENSPAN SAYS `WE HAVE A LOT OF UNCERTAINTY OUT THERE’
  • *GREENSPAN SAYS HE’S CONCERNED BY SLOWER OUTPUT PER HOUR
  • *GREENSPAN SAYS PRODUCTIVITY WILL HAVE TROUBLE ACCELERATING
  • *GREENSPAN SEES PROBLEM MOVING TOWARD `NORMALIZED’ POLICY

He is also an oil analyst…

  • *GREENSPAN SAYS OIL MARKET HAS EXCESS CAPACITY, SLACK
  • *GREENSPAN: WITHOUT MIDDLE EAST TENSION OIL PRICES WOULD FALL
  • *GREENSPAN: CRUDE WOULD BE $15-$20 LOWER IF NOT FOR MIDEAST WOES

And warns of US fiscal problems…

  • *GREENSPAN SAYS U.S. LACKS `FISCAL RESOURCES’
  • *GREENSPAN SAYS U.S. HAS `NO WAY TO FIND NEW REVENUES’
  • *GREENSPAN SAYS U.S. `RUNNING OUT OF BUFFER IN ECONOMY’
  • *GREENSPAN SAYS FISCAL POLICY MAY PUT STATUS OF DOLLAR AT RISK

And then there’s this…

  • *GREENSPAN SAYS DOLLAR HELD `IN EXTRAORDINARY ESTEEM’

Except in Russia, China, Brazil, and India?




via Zero Hedge http://ift.tt/1zuRIB8 Tyler Durden

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