Greenspan Dead

Is Warsh all talk, or will he actually follow through with his words? I expect he will not and cannot. This article agrees that while the jury is still out, he likely will follow in the footsteps of recent Fed chairmen.

Monday, stocks gained 1.1% in Asia, 0.5% in Europe, and 0.4% in the U.S. on 24B shares traded. The VIX rose 5% to end at 17.28. Precious metals and their miners fell 1%. IBM ended above 250. Alan Greenspan died, but his legacy of Fed meddling lives on.

Tuesday, stocks lost 4.1% in Asia, 0.7% in Europe, and 0.6% in the U.S. on 25B shares traded. The VIX advanced 13% to end at 19.49. Precious metals fell 3% and their miners lost 5%. The NASDAQ and S&P below 26,000 and 7500 respectively. Apple ended below 300 and IBM closed above 260.

Wednesday, stocks fell 0.3% in Asia but were little changed in Europe and the U.S. on 27B shares traded. Precious metals fell 5% and their miners lost 4%. The S&P 500 index ended below 7400.

Thursday, stocks gained 1.9% in Asia, 0.9% in Europe, and 0.5% in the U.S. on 21B shares traded. Precious metals and their miners rose 1%. IBM closed below 260.

Friday, stocks lost 3.0% in Asia and 0.7% in Europe but gained 0.3% in the U.S. on 32B shares traded. Precious metals and their miners rose 2%. IBM closed above 270.