Greenspan, the red-nosed reindeer

[timework@xxxxxxxxx (Tom Walker)]

Greenspan intimates that the economy is slowing too fast, the stock market
takes that as a sign of lower interest rates to come and instantly discounts
those not-yet-hatched lower rates. The wealth effect of the run-up in stock
prices will encourage folks to extend their credit card debt more than they
had planned during the christmas season. Higher than anticipated christmas
sales will cause the GDP to grow at a faster rate during the fourth quarter,
which will lead investors to speculate that the fed will hold steady on
interest rates, as a consequence of which the NASDAQ will plunge 10% in a day.

Greenspan, the central banker
had a very pliant fed
and if you ever saw it
you would even say it spread.
All of the Wall Street brokers
used to laugh and call him names.
They always made poor Alan
play in all their hedging games.
Then one stalling GDP
NASDAQ came to say,
"Greenspan with your rate so high
won't you light my index tonight."
Then all the exuberant brokers
shouted out with irrational glee
"Greenspan, the central banker
you'll go down in his-tor-y"

Tom Walker
Sandwichman and Deconsultant
Bowen Island, BC