Greenspan frets

CBS MarketWatch headline headline. DJIA -100. Nasdaq -25.

Markets flounder

Wouldn't you know — one day after I invest a big pile of cash in the stock market, Alan Greenspan, Chairman of the Federal Reserve, sounds off about the declining strength of the US dollar, and the market flounders.

It seems persuasive that, given the size of the U.S. current account deficit, a diminished appetite for adding to dollar balances must occur at some point.
— In remarks for conference on the Euro

What is it with people? Any damn fool could watch the business news and know the dollar is at an all-time low against the Euro. Any damn fool could know that the US has become one of, if not the, world's biggest debtor nations. But when Greenspan points it out, then it's a big f*ing deal!

If the US were some developing nation racking up massive debt with no apparent plan for budgetary sanity and with no apparent concern about it, there would be calls for an intervention to stave off impending disaster. This irresponsible behavior is enabled by foreign investors who keep pouring money into the US, buying up our debt. If they ever decided to stop investing — or worse yet, pull their money out — there would be an economic meltdown.

And what is it with Greenspan? Now he's concerned? Where has he been for the past year? It seems to me that Greenspan has been too willing to tailor and time his delphic pronouncements to the advantage of the current administration. He roils the markets but seems unwilling to ruffle the feathers of the incompetents running the show in Washington.

What's a body to do?