財經故事之五 ---讓市場樹起耳朵的人

 

  

以此文敬我的偶像：Alan Greenspan

 

“Big Al Greenspan needs no intro.  He is the man in US financial markets.  No, scratch that.  In world financial markets.” --- Quoted from iTulip.com's President Arnold Greenspatz interviews Fed Chairman Alan Greenspan, March 25, 1999.

 

 

Well, right or wrong. As one of his fans, I know many investors think he not only influences markets but actually controls them, and not just that but he is on their side.  The press isn't doing much to counter this impression.  The Spring 1999 issue of Fidelity Focus has a piece on him for their investors with the comically understated subhead, "Following the Federal Reserve's actions may give clues to the market's moves."  The piece describes how the Fed stepped in last September with a few rate cuts that reversed a 19.5% drop in the Dow, a move followed by a Dow rise to new heights just five weeks after the cuts.  The article offers many other illustrations of the Fed's positive influence on financial markets over the years, such as rate increases in 1994 that, "set the foundation for what became the best consecutive four year period in stock market history."  The message that the entire article conveys to Fidelity investors is: "Your money is safe in the stock market.  Al will make sure the market goes up over the long term."  The impression is neatly summed up with the popular market maxim: "Don't fight the Fed."  Do you feel it's fair to say that the majority of investors view the Fed as not only a defender of price stability and maximum sustained growth but also a protector of the stock prices?

 

I certainly would not make that assumption.  Fed interest rate policy does not consider the price of equities, other than certain popular Internet stocks.  If small investors believe that they can foretell Fed policy, then they would be much better off speculating with instruments, which directly reflect interest rate environments.  Interest rate futures, interest rate swaps, forward rate agreements, and derivatives based on very long bonds should provide the action and leverage needed to satisfy many small investors.  However, There is no exaggeration regarding his personal influence on the global financial markets, especially the US market. When he is delivering his speeches or testimonies in the US Congress, every trader becomes quiet and their ears pert up.

 

As my grandfather said: “You should carefully read a great person’s biography because you not only show your respect to that man, but also you can learn from their successful life path.”  So here I attach Mr. Alan Greenspan’s Biography for readers of my Blog as their reference.

 

 

                                                    *****Biography Of Alan Greenspan*****

 

 

Education and Birthday

Greenspan was born March 6, 1926, in New York City. He received a B.S. in economics (summa cum laude) in 1948, an M.A. in economics in 1950 and a Ph.D. in economics in 1977, all from New York University. He also has performed advanced graduate study at Columbia University.

 

Service Term as Chairman of Fed and Advisor of US Government

Alan Greenspan took office June 20, 2000, as Chairman of the Board of Governors of the Federal Reserve System for a fourth four-year term ending June 20, 2004.

 

Greenspan also serves as Chairman of the Federal Open Market Committee, the system's principal monetary policymaking body. He originally took office as chairman and to fill an unexpired term as a member of the board on Aug. 11, 1987.

 

He was reappointed to the board to a full 14-year term, which began Feb. 1, 1992. He has been designated chairman by Presidents Reagan, G.H.W. Bush and Clinton.

 

Greenspan has also served as a member of President Ronald Reagan's Economic Policy Advisory Board, a member of Time magazine's Board of Economists, a senior adviser to the Brookings Panel on Economic Activity, and a consultant to the Congressional Budget Office.

His previous presidential appointments include the President's Foreign Intelligence Advisory Board, the Commission on Financial Structure and Regulation, the Commission on an All-Volunteer Armed Force, and the Task Force on Economic Growth.

 

Other Social Directorships

From 1954 to 1974 and from 1977 to 1987, Greenspan was chairman and president of Townsend-Greenspan & Co. Inc., an economic consulting firm in New York City. From 1974 to 1977 he served as chairman of the President's Council of Economic Advisers under President Gerald Ford and from 1981 to 1983 as chairman of the National Commission on Social Security Reform.

 

Greenspan in recent years served as a corporate director for Aluminum Company of America (Alcoa), Automatic Data Processing Inc., Capital Cities/ABC Inc., General Foods Inc., J.P. Morgan & Co. Inc., Morgan Guaranty Trust Company of New York, Mobil Corp. and The Pittston Co.

 

His noncorporate positions have included member of the Board of Trustees, The Rand Corp.; director, Institute for International Economics; member of the Board of Overseers, Hoover Institution (at Stanford University); and vice chairman and trustee, Economic Club of New York.

 

Greenspan has served as chairman of the Conference of Business Economists, president and fellow of the National Association of Business Economists, and director of the National Economists Club.

 

He has received honorary degrees from Harvard, Yale, Pennsylvania, Leuven (Belgium), Notre Dame, Wake Forest and Colgate universities. His other awards include the Thomas Jefferson Award for the Greatest Public Service Performed by an elected or appointed official, presented by the American Institute for Public Service, 1976 (joint recipient with Arthur Burns and William Simon); election as a fellow of the American Statistical Association, 1989; and decorated Legion of Honor (Commander) France, 2000.

 

Information Source: NewsMax.com

 

 

寫於2005年2月13日多倫多