Although many may praise Alan Greenspan as The Maestro, he is still the one who has made many mistakes in his life. During the period from 1973 to 1990, he miscalculated and implemented economic policies that weakened the American economy. In order to better understand and search for “Maestro”, I highly recommend that you read this article.
On January 7, 1973, Alan Greenspan made a powerful prediction in which he urged people to move on the stock market. However, 4 days later, the Dow Jones Industrial Average (DJIA) dropped 46%, turning it into a major asset in history. With the collapse of this stock market, people who followed the advice of his stock lost a great deal and saw that their assets had declined. To me, this was one of the first colleges he made to the public.
In addition, he strongly believes in the economic power of interest rates, he has been very active in lowering interest rates with low interest rates held for a long time from 1973 to 1994. As a result, these people were able to move their capital from storage certificates (CDs) and bonds into trees, feeding a wooden bubble (defined as a source of income). there are 2 standard variations from the long term).
To make matters worse, when the stock market is declining, he always wants to increase debt no matter what so that the markets do not collapse. This was widely known as the Greenspan Put and because of this strong support it provided for the stock markets, many people were very concerned about the assets. Coupled with low interest rates, total tree bubble growth declined and eventually collapsed in 2001.
Also, when the formation of the wooden bubble was clear in the 1990s, it did not increase the requirements for the side. On the financial side, it is the side with the least amount of money to invest in trading financial instruments. With so few requirements and ideas that are so wise, many investors have had a lot of influence and made a lot of money since this time of crisis.
Also, unaware of this visible bubble, it hardened in 1999 by increasing credit scores in response to Y2K fears. This added fuel to the fire for the market, attracting a large number of people to the market and eventually burning their capital.
Here, Greenspan’s stupidity was largely a lie as he reduced bank rates as bubbles and cut them again to determine the consequences. This inflation increased as the economy declined. At the same time, little is known about rental rates as an economic tool.
To make matters worse, he has repeatedly blamed himself for his bad decisions by claiming he did not see the bubbles form and saying that the bubbles would only be visible after the explosion. To most, I believe that unrepentant behavior should be avoided.
However, while he himself made many mistakes, he sometimes made the right decision. For example, it raised interest rates in February 1995 in an attempt to curb the growth of bubbles. However, he went back to blocking interest rates in July 1995, which worsened again, setting the stage for the 2001 market crash.
Finally, after talking about the Maestro that went wrong, I believe readers have come to understand better about his weak appearance. While I am dealing with all of this, it is hoped that readers will be able to learn and benefit from its mistakes as history unfolds.