“Today, the political pressure on government officials to respond to every perceived shortcoming in economic performance has become overwhelming. I observed it build over my more than two-decade stretch in public office. Even if policy makers acknowledge that allowing market declines to exhaust themselves may indeed return markets to balance, there always exists some uncertainty of how long an unimpeded market decline will persist or how deep it will go. Accordingly, in recent years policy always has seemed biased toward short-term activism when, more often than not, allowing markets to rebalance and heal is the most prudent policy.
It has been my regrettable experience that the political response to policy makers’ actions heavily biases the policy makers toward catering to short-term benefits, largely disregarding long-term costs.”
Greenspan, Alan. The Map and the Territory 2.0 . Penguin Publishing Group.
Thursday, October 10, 2019
Bonus Quote of the Day
The following, from Greenspan’s 2014 book, speaks (screams) to what we’re presently experiencing!