Alan Greenspan - On "The Stock Market As A Stimulus"

Alan Greenspan gave an interview to The Wall Street Journal on January 7.  I found various parts to be of interest, and in many instances I disagree (partially or fully) with what he says.  I wrote a February 3 blog post on his comments in the interview concerning the primary purpose of a central bank.

Given the recent steep climb in the stock market, I think it is interesting to highlight his comments on the interaction between The Federal Reserve and the stock market.   While his entire thoughts on the issue are notable, I found his comment at the 16:24 mark to be, for a number of reasons, very provocative:

"...the stock market overall is the only type of stimulus that you can get in the economy which doesn't have any debt associated with it."

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I'll likely further comment on this, as well as other recent comments made by Federal Reserve officials on the stock market, in a future post...
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A Special Note concerning our economic situation is found here
SPX at 1339.26 as this post is written