Irrational Exuberance
An interesting little article that argures that Alan Greenspan’s monetary policy helped set up a few prominent music scenes.
I giggle a little bit here because I used to be a fan of Alan Greenspan’s. Not in the sense that I agreed with any of his vaguely Randist policy and their effects on human affairs, but…
It started with that statement. You know the one.
How do we know when irrational exuberance has unduly escalated asset values which then become the subject of unexpected and prolonged contractions as they have in Japan over the past decade.
Immediately everyone started selling. Beginning with Asia before spanning the globe back to the USA.
Of course, the stock market bubble continued apace after its (very) brief slide, meaning “irrational exuberance” continued onward, and so a paradox is created with regards to Alan Greenspan circa mid to late 1990s:
Was he All Powerful — for he could create disruptions in the world markets by sending out cryptic messages that needed to be deciphered, or was it a case where the Emperor have No Clothes — for the ripples really didn’t last that long?
It’s a question that I quietly puzzled over back in high school without any answer forthcoming. An enigma inside of a riddle.
And those are misty water colored memories of the way… we were.