Greenspan And the U.S Economy One year ago, individual investors were praising Alan Greenspan. Now they're condemning him. What exactly happened?The ever-so important tech stocks collapsed, that's what. Those companies that were the highest-flying, most-popular investments suddenly dropped to levels that those buying "great companies" did not think it possible for them to go. Where just nine months ago we were in danger of inflation, now the American economy is coming to a dangerous halt, growing at a crippling 1.1%.How could Greenspan, the man who managed the economy with such a skillful touch for 14 years, have screwed up so badly? Why is it that those who believed deeply in his psychic-like powers when he maneuvered us through crises in 1987, 1990, 1994, and 1997 suddenly believe the Chairman of the Federal Open Market Committee is losing his touch?It's because people are angry, angry and scared. More than $2 trillion of market value has evaporated from the Nasdaq market alone over the past year. If people truly vote their pocketbooks, then as $20,000 per every household went up in smoke those pocketbooks seemingly turned their owners not just against Clinton and Gore but any remaining symbols of the time of prosperity.Now Greenspan is the last of the brain trust that supports U.S. fiscal policy over the last eight years, still in office, surrounded by a bunch of new people who aren't so sure it was so great and weren't there anyway.These complains came to a climax this past week when John Chambers, CEO of Cisco Systems, said the Federal Reserve acted too slowly in lowering rates and now must aggressively cut rates even lower than the already points in order to keep the economy going. Chambers also called for President Bush's tax cut, aimed at exciting the economy and getting things going again. Great logic - except for the fact that it is just plain wrong.Interest rates matter most to companies that want to fund growth through loa...
