More blows for the mules
THE forecast of the year comes from Alan Greenspan, newly installed as chairman of the Federal Reserve Board of the United States. Giving evidence on Capitol Hill, Mr Greenspan was asked how the eco- nomy would perform in the months ahead, and replied that this was very difficult to project. Pressed to add more, he declined, saying that if he misphrased his answer the financial markets might react unnecessari- ly. I wonder what Chairman Greenspan thinks the markets are doing now, or whether — as a good central banker, concerned for the integrity of his currency — he privately thinks that their reaction is necessary? It takes time (as I was saying last week) for the Americans to accept that the dollar's worries are their worries, let alone their fault. The more time it takes, the worse for all of us. Markets will continue to hit the mules over the head with a four-by-two plank until they can attract some attention.
Previous page
