The Greenspan Domino Theory

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And so the fallout continues. Once again, dour comments by Federal Reserve chief Alan Greenspan on the state of the U.S. economy have touched off a world-wide spate of panic selling, reports Money Daily. Southeast Asian markets were the most affected, with Hong Kong's Hang Seng index dropping 4 percent and Japan's Nikkei falling nearly 250 points. The bulls were equally spooked in Europe - Germany's DAX and Britainís FTSE were sinking slowly early Thursday. All this on the back of Greenspan expounding a very simple economic truism: higher employment means higher wages and higher prices. What on earth would happen if he ever said something really bad?

  • What Makes Greenspan Tick? (Money Daily)

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