Borse rescued, long-term stability danger?

The conservative business press is less happy with the youngest decision of the US Federal Reserve Chief to be accepted

Yesterday’s lowering of key interest rates by US Federal Reserve Chief Alan Greenspan may have saved the boro courses before another crash, but it was therefore necessary to danger the long-term stability of economic development.

After the record gain of the Technology Orse Nasdaq and rising courses on all major borses worldwide as in a propagating wave movement, the world seems to be fine for investors again. Last but not least, the image of Greenspan is the "Point" Polished, to which the merit attributes for a ten-year economic recovery in the US and also as a rescuer of the global economy following the so-called "Asian financial crisis" 1997/98 is seen.

But not all see that. In a non-critical commentary, the Financial Times wrote in her presentation in the Lex Column:

"The development of the excesses of a surviving stock market is a painful but necessary process – and one of the one who has a wide distance in the case of technology values. By understanding [Greenspan] investors, that he comes to their salvation, whatever gift MOGE, he encourages excessive risk and the creation of more detailed Bubbles."

Once again, Greenspan has shown that he is ready to intervene when someone has scattered with excessive risk. As a result of the 1997/98 financial crisis, Hedge-Fund Long Term Capital Management was in trouble. Hedge funds are unregulated funds in which institutional investors bring in a huge amount of exception, which is then speculated in a way that exploits the highest technical subtleties of the market. Greenspan had orchestrated that banks brought a total of 3.5 billion dollars in Long Term Capital to save the hedge-find before the collapse. The reason was that with the collapse of such a coarse fund, the global financial system in a confidence crisis had come to.

However, what Greenspan has thus achieved, but above all, the discussion was to disable possible regulatory attempts of the global financial system. Some of the middle-left governments of the Western industrialized nations had been inclined to consider possibility, as above all the probation speculation could be stored. After the gross confidence crisis could be turned away again and the US economy raised two more extremely good years, such reform losses disappeared again from the agendas of the G8 conferences. Now Greenspan has been able to save the Borse’s Borse for a short time, but the long-term stability has not done a good service. And yesterday’s Borsen euphoria is already being summarized today, as the mirror economic edition texted.