Greenspan Still Sways Markets--Whether He Wants to Or Not
Sure, Ben Bernanke is the current Federal Reserve chairman. But after Tuesday's market meltdown, everyone seems to be talking about Alan Greenspan and his use of "the 'R' word."
But does that mean the ex-Fed chief needs to watch his mouth? Two economists took on the question of free speech versus accountability, in "Morning Call."
T.J. Marta said Greenspan -- who was given an honorary knighthood by Queen Elizabeth II -- is "not a private citizen and he never will be." Marta, chief income strategist at RBC Capital Markets, opined that when one has the standing and high profile of Greenspan, "you need to be careful" about making statements.
But Marta did note that the former Fed leader's words were not intended for public consumption, and were "released out of context." Earlier on Thursday, Greenspan clarified his remarks, saying a recession was possible, but not probable.
Just who "released" Greenspan's statement earlier in the week is a matter taken up by Robert Brusca, chief economist at Fact and Opinion Economics. Brusca told CNBC's Mark Haines that "if your news comes from some hedge guy," one is bound to make strategic errors.
He chided the parties responsible for leaking and "misquoting" the ex-Fed chairman's comments, asking rhetorically, "Should he [Greenspan] have to give up his livelihood because of it?" Brusca summed up with a warning to investors: "The market has always had rumor-mongers."