Wisdom Farms

When Greenspan talks, People Still Listen

>>One thing I noticed was another article that stated that the Dow was down worse yesterday than after 9/11…after Greenspan gave his prediction that the US would have a recession toward the end of this year….question…why would he forecast something like that, knowing people will freak!??  And sure enough the very next day…down, down, down, I have no idea what happened today but found that whole situation `interesting'.  (I am new to this so forgive me if that seem like a stupid question.

Moving forward...

When Greenspan talks, people listen. Why?

1. He maintained his postition for close to 20 years as Head of the Federal Reserve. The current ecconomy is his creation.

2. Ben Berneke is the current head of the fed reserve and many have not been pleased with his "leadership" or lack of. He also agrees with the Baby Boomer stock crash that will take place around 2012 - 2017 (slated for 2016)

3. Financial heads trust Alan Greenspan more vs Ben Berneke. So again when Greenspan speaks, retired or not, people still listen.

The federal reserve for those of your who do not know is a privately held company. It is not Federal nor no longer a reserve. When we were still on the gold standard, at least they did reserve the gold. They no longer perform that function, thus the dollar is backed only by the confedence of the americal people and big corporations.

From Wikipedia...

The Federal Reserve Banks are nominally "owned" by private "member banks" (in that each member bank owns nonnegotiable shares of stock in its regional Federal Reserve Bank; see below). In Lewis v. United States, the United States Court of Appeals for the Ninth Circuit stated that "the Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion also stated that "the Reserve Banks have properly been held to be federal instrumentalities for some purposes."  Another decision is Scott v. Federal Reserve Bank of Kansas City in which the distinction between the Federal Reserve Banks and the Board of Governors is made.

The member banks are generally privately owned corporations. The stocks of many of the member banks are publicly traded.

The Federal Reserve System was created via the Federal Reserve Act of December 23rd, 1913. The Reserve Banks opened for business on November 16th, 1914. Federal Reserve Notes were created as part of the legislation, to provide a supply of currency. The notes were to be issued to the Reserve Banks for subsequent transmittal to banking institutions.

http://en.wikipedia.org/wiki/Federal_Reserve_System

I hope this helps, please keep asking questions such as this. This is what this forum is about.

In His Service,

Ray
Prophezine