Wizard of Oz II: An Alan Greenspan Production

It's been kind of hectic here in San Francisco for the last couple days, so I didn't actually get around to reading this story in the Telegraph, but I just had to share the title and the image.

Obviously a deflationista, Mr. Hendry stopped making sense shortly after he concluded the discussion of the late 19th century debate on bimetalism, which was, indeed, a very nice summary of a quainter time in monetary history.

Buy long-dated Treasuries with a three percent yield rather than gold?

That's what some people say - those who doubt the ability or the will of the government to combat the unwinding of this massive credit bubble.

I'm not one of those people - the gubment is likely to be much more successful than most people could ever imagine today, after "the chain catches the sprocket", an expression I've been using quite a bit over the last couple days.

Comments

[axelrod608:]

Uh, all rational facts now in evidence point to the chain SAW hitting the sprocket. The 2006 credit bubble is no more reinflatable than the Hindenburg. We have a situation here. The powers that be zealously believe that the economy can be brought back to "normal", which they define as 2006. While the evidence shows that bloated bubble of an "economy" to be unsustainable.

The facts will prevail. The reinflationistas will not. Keep your seat belts fastened.

2008 Dec 02 11:15 AM