In today's story which points out the new rising conservatism, Alan Greenspan "sounds alarm" on what the real threat to the USA is and it is not some fucking AL-queada non-threat. It is, in fact, the very organization that works day and night to tell us about how everything and everyone in the world is a threat EXCEPT itself. The REAL threat to Americans is our liberal spendaholic government.
He goes on in a round about way to say that the human herd, when pushed to limits, becomes extremely volatile and unpredictable. He says that the engine of the debt Ponzi, i.e. credit, liquidity, call it what you will, could dry up in an eyeblink and in fact it has done so in the past. Greenspan is very clear in his views that "liquidity is FUNDAMENTALLY a psychological issue". In other words, it is what the herd says it is and there are no other overarching fundamentals at play. In other words, a con is only a con as long as the patsy continues to believe in it. Once the belief is shattered, the confidence (credit) evaporates overnight.
His exact words were:
"I think we've never been in a position such as this, so. Very difficult
to be definitive as to what might happen or might not happen. But,
remember, liquidity fundamentally is a psychological issue. We have
periods of tremendous amount of liquidity in the past, which disappeared
virtually overnight. Human psychology is very volatile and all you need
is a slight little tilt and liquidity disappears, as it did immediately
following the crisis of 2008."
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