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发帖数: 7930 | 1 Greenspan: No irrational exuberance, stocks undervalued
Alan Greenspan said investors don't have to worry about irrational
exuberance driving the current stock runup
NEW YORK (CNNMoney)
Former Federal Reserve Chairman Alan Greenspan said that even with record-
high stock prices, investors don't need to worry about "irrational
exuberance" this time.
In fact, his current view is that stocks are still "significantly
undervalued."
The Dow Jones industrial average's 10-session winning streak heading into
Friday is its longest since November 1996.
Less than a month after the 1996 streak, then Chairman Greenspan shook stock
markets by warning that climbing share prices could be the result of
irrational exuberance. That became one of the most famous phrases of his 18-
year tenure as head of the central bank. But he has an opposite view today.
"Irrational exuberance is the last term I would use to characterize what is
going on at the moment," Greenspan said on CNBC Friday morning. Asked about
the recent bull market, he responded, "It's still got a ways to go as far as
I can see."
Related: Dow - best streak since irrational exuberance
Greenspan said the current stock run is due to reduced fears that the
European sovereign debt crisis would crash economies around the world. He
also seemed to dismiss the idea that the Federal Reserve's asset purchase
program is responsible for driving stocks higher.
Greenspan said that the recent rise in both stock and home prices has done a
great deal to protect the economy from the damage many expected to see
after payroll taxes rose at the start of the year.
"Both home prices and stock prices have been very powerful for us this year,
" he said.
While Greenspan gets a lot of credit for warning of the dangers of the stock
market bubble that burst in March 2000, his track record of calling asset
bubbles is not unblemished.
During the run up in housing prices that would eventually be blamed for the
2008 global financial meltdown, Greenspan denied there were any signs of a
housing bubble, saying that home values were only "frothy." He later
conceded that he was "shocked" when the financial system "broke down" that
year.
Asked Friday if he thought Ben Bernanke, his successor, would return for
another term as Fed chairman when his current term expires in January 2014,
he responded, "I would hope so, but I can fully understand if he's had
enough."
First Published: March 15, 2013: 9:47 AM ET
http://money.cnn.com/2013/03/15/investing/greenspan-irrational- | V*****2
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