Re: Greenspan, friend of Bill

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Woodward paints the scene that followed:

At the president-elect's end of the table, Clinton's face turned red with anger and
disbelief.  'You mean to tell me that the success of the program and my reelection
hinges on the Federal Reserve and a bunch of fucking bond traders?' he responded in
a half-whisper.

Nods from his end of the table.  Not a dissent.

Clinton, it seemed to [Alan] Blinder, [whom Clinton later appointed as Vice Chairman
of the Federal Reserve Board] perceived at this moment how much his fate was passing
into the hands of the unelected Alan Greenspan  [Chairman of the Federal Reserve
Board] and the bond market.

[George] Stephanopoulos [Clinton's Communications Director in the 1992 campaign,
realized that the administration's] first audience would have to be the Fed and the
bond market.  [Woodward 1994, p. 84]

Indeed, once Clinton took office, his Secretary of the Treasury, Robert Rubin, would
give him daily briefings about the mood of the bond market.




--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com