By Tyler Durden
Authored by Sven Henrich via NorthmanTrader.com,
Call Me Al
You can call me Al. By Al I mean Alan Greenspan. Oh I know, he has tons of detractors and critics and there’s a lot to be critical about. But before you go on a hate tirade let’s all have some respect. The man is 93 years old and I for one, if I make it to that age, would be glad to be just half as lucid as he is at this age. Respect.
Now what I’m talking about here is Alan’s interview on CNBC on Friday. Have a close listen as there are some interesting nuggets in there.
It’s actually fascinating for several reasons:
One: He acknowledges that a 10% $SPX rally correlates to 1% GDP growth. That’s how closely markets and the economy are linked. Hence the vested interest by the powers that be to keep levitating asset prices. No wonder then that President Trump is so eager for the Fed to go on the path of QE:
If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% …read more
Source:: Zero Hedge