The Center for the Moral Defense of Capitalism When Federal Reserve chairman Alan Greenspan speaks, markets listen. But Mr. Greenspan doesn't create wealth, as E.F. Hutton did when he spoke. Mr. Greenspan's speeches tend to destroy wealth. Last week, for example, Greenspan told Congress that he'll keep raising interest rates. We have only Greenspan to blame for the drop, because there's nothing wrong with the American economy.
Growth is strong, corporate earnings are up, inflation is down, job creation is robust.
Rising stock prices reflect this good news and the chance it'll persist. The market is an efficient mechanism for valuing companies. But the Fed presumes otherwise. In fact, these rate hikes will only boost inflation, depress earnings, and lower the value of companies. Invariably, that's what has happened before.