The Greenspan Effect: Words That Move the World's Markets

by Sicilia, David B.; Cruikshank, Jeffrey L.

• ISBN13: 9780071382526
• ISBN10: 0071382526
• Edition: Reprint
• Format: Paperback
• Copyright: 2001-09-01
• Publisher: MCG

Summary

"[David Sicilia and Jeffrey Cruikshank] have done their homework on this fascinating economist. Greenspan's career is spelled out to readers in this informative and interesting read."­­San Diego Union Tribune Selected by Library Journal as a Best Business Book of the Year With one key phrase or comment, Federal Reserve chairman Alan Greenspan can send global financial markets tumbling­­ or soaring! The Greenspan Effect provides an up-close examination of Greenspan's tumultuous regime, suggesting to investors what pronouncements to expect­­ and what they will mean­­during the remainder of his remarkable term in office.This in-depth analysis of the words of Alan Greenspan includes highlights of his most influential speeches and demonstrates his uncanny, far-reaching power to impact markets on a global scale. In addition, it explains how to separate rhetoric from meaningful signals and anticipates the impact Greenspan is likely to have on future global markets. The Greenspan Effect focuses on one powerful and brilliant man, his words and actions, and how investors can profit from this new knowledge.

Author Biography

David B. Sicilia, Ph.D., is an experienced consultant, business historian, and author. Dr. Sicilia is the author or coauthor of numerous influential books, including The Engine That Could: Seventy-Five Years of Value-Driven Changes at Cummins Engine Company and The Entrepreneurs: An American Adventure.

Jeffrey L. Cruikshank is a cofounder of Kohn-Cruikshank, Inc., a Boston-based communications consulting firm. He has written or cowritten a number of business-related books, including the bestselling Do Lunch or Be Lunch, and was a coauthor with David Sicilia of The Engine That Could.

Table of Contents

The Power of Greenspan	xi
Part I GREENSPAN, THE FED, AND THE STOCK MARKET
The Fed Chairman as World Celebrity	3	(12)
The Fed's Levers of Power	15	(14)
Part II WORDS THAT LIFT MARKETS
The ``Exceptional'' Economy	29	(6)
The ``Oasis of Prosperity''	35	(7)
The ``Salutary'' Self-Off	42	(5)
The Wealth Effect	47	(8)
Part III WORDS THAT SINK MARKETS
``Irrational Exuberance'' in the Stock Markets	55	(7)
Battling Inflation	62	(6)
Tight Labor Markets	68	(6)
Financial Contagion	74	(9)
Part IV REMARKING FINANCIAL INSTITUTIONS
Reforming Social Security	83	(7)
Merging Commercial and Investment Banking	90	(5)
Reforming Federal Deposit Insurance	95	(4)
Derivatives	99	(10)
Part V WORLD CRISIS MANAGER
The Asian Crisis	109	(6)
The Crash of '87	115	(6)
The Gulf War	121	(8)
Part VI COMPETING IN THE GLOBAL ECONOMY
U.S. International Competitiveness	129	(5)
Foreign Investment in the U.S.	134	(5)
Economic Reform in Russia and Eastern Europe	139	(5)
The Virtues of Capitalism	144	(7)
Part VII CRITICAL INVESTMENTS
The American Education System	151	(4)
Consumer Saving, Credit, and Retirement	155	(5)
Corporate Restructuring	160	(5)
Income Inequality	165	(4)
Small Business Finance	169	(5)
The Farm Economy	174	(5)
Mortgage Finance	179	(5)
The Federal Budget Deficit	184	(9)
Part VIII GREENSPAN LOOKS TOWARD THE 21ST CENTURY
The ``New'' Economy	193	(8)
The Future of the Federal Reserve	201	(4)
The Future of the Banking System	205	(5)
The Future of Financial Services	210	(4)
Technology and the Future	214	(7)
Part IX THE INVESTOR'S ROADMAP TO GREENSPAN
Explaining the Greenspan Effect	221	(7)
The Game of Deciphering Greenspan	228	(7)
What Matters---and Doesn't---When the Chairman Speaks	235	(8)
Greenspan and the Future of the Stock Market	243	(8)
Notes	251	(18)
Bibliography	269	(2)
Index	271