There is only a handful of people who will actually believe this, but trust me this is how is it.
Greenspan gives this upbeat update on the economy he gives all the good reasons and figures to show that 'things are picking up' jobs looking better, all that rubbish but there is still some caution in his words which everyone seemed to miss ...some doubt and uncertainty about the future, things at a critical point and so on.
Then you start to think 'hang on minute' imagine what the affect would be right now if Greenspan told the truth ..ie Interest rates are at 1% and clearly unstainable, America in debt up to it's knees... did you know the American to debt ratio is something like 65-70% of GDP ...now that is unbelievable ...anyone who knows basic economics knows this is totally unstainable anywhere for a long period of time. So suddenly interest rates starts creeping up ..Debt ridden America starts paying for the cost of their money and their unstainable lives ..so whats the first thing they do? Obviously they "START SPENDING LESS MONEY" what affect does that have on an economy?? ....and so on...you see my point, America is a basket case. But despite this somewhat basic understanding Greenspan tries telling us how good things are.
This means one of two things ..(1) Greenspan is not as switched on as most would like to think. (2) Greenspan is highly switiched on ..he is aware of the affect this would have.... and would say 'anything' to avoid the reality happening any sooner than it should ...and suprise suprise!! so close to an election ..now that would make some people wonder surely ...I mean if you never ever questioned the influence the power the political party of the day actually has !! then you would never have cause to doubt them!! ...I mean are you really going to let some National Bank Boss have so much power that he can completely freak people out and cause panic in the market with the truth ...and the political death that will follow ...no way!!
So there it is ...reality is not that hard to explain but it is hard to find ...everything I've said will be proven correct if your really prepared and switched on ..just be cashed up and ready to go short when it starts ..cause once it starts it's not going to stop for a long time.
If you can see the market on this level you should be doing pretty well..cause you way ahead of the pack ...
