It is as notable as a 2nd term president handing off the big problems to the next guy, as George Bush did with Barack Obama in 2008; the changing of the guard at the Fed, that is.
Alan Greenspan oversaw the making of a stock bubble in the final phase of the great bull market ended in 2000. He then instigated a credit bubble, which launched a housing bubble, made the credit hopped consumer feel wealthy and oh yes, built unsustainable distortions into the system through diced and sliced debt derivative vehicles of all kinds.
Then in 2006 he deftly made the hand off to Ben Bernanke. Bernanke then dealt with the Maestro’s second aftermath as it began cropping up in 2007 and now, nearly 4.5 years into a cyclical bull market that has another 6 months or so to run if it is to match the two previous cycles (not a given), it is time once again for a hand off. Continue reading "Hand Off to a New Fed Chair is Well Timed"