Friday, December 03, 2010

The Economy Of My Friends

Great timing Alan:

Current monetary policy has worked because it has helped lift stock prices which in turn have fueled the economic recovery, former Federal Reserve Chairman Alan Greenspan told CNBC on Friday.

"There's a real upward momentum here," he said. "I think we are underestimating and continuing to underestimate how important asset prices, very specifically equity prices, are not only to shareholders but the economy as a whole."

There's something to this, just not nearly as much as our Galtian overlords believe. It probably is the primary way QEII can work, but therefore the reason it is unlikely to do well.

They should have given us all shares in the syndicate.