Tuesday, March 06, 2007

Say it ain't so, Al

We are in the sixth year of a recovery; imbalances can emerge as a result. Ten-year recoveries have been part of a much broader global phenomenon. The historically normal business cycle is much shorter'' and is likely to be this time. Alan Greenspan

I guess you have to leave Financial Official-dom to divine that imbalances can occur during business expansions and that those imbalances might hamper further expansion.

Hank, The Hammer, Paulson, as he has not yet left Financial Official-dom thinks The global economy is more than sound: it's as strong as I've seen in my business lifetime. No flies (or imbalances) on you, eh Hank?

He went on to opine about problems in the mortgage market, Some of the credit issues are there, but they are largely contained. Isn't that what they said when the Titanic first started taking on water?

I'll pick a nit with Greenspan's view- the idea that imbalances CAN occur. Is he suggesting that the US economy was in balance when he left it? Or is he expecting imbalances to show up some time in the future?

One last nit to pick, I wonder to what much broader, global phenomenon is he referring- globalization, productivity or himself?