Difference between Alan Greenspan and Ben Bernanke
An economic clash of sorts is in the works, and on either side are Alan Greenspan and Ben Bernanke, who are the ex- and current Federal Reserve Chairmen respectively. Although two conflicting statements released by both would appear to put them at odds with each other, their respective stances may not be as divergent as they would seem, as you will see in this comparison article.
Profile
Alan Greenspan served as the United States Federal Reserve Chairman from 1987 to 2006. At present, he is working as a private advisor, providing a variety of consulting services by way of Greenspan Associates LLC. Greenspan made headlines on February of 2010 with his suggestion of the possibility that the U.S. economy was destined for a recession by the end of the year.
Ben Shalom Bernanke is the current United States Federal Reserve Chairman, having replaced Greenspan in 2006. He was formerly the Fed Governor and served under President George W. Bush as Chairman of the Council of Economic Advisers. Bernanke was notable for his attempt to ease fears with regard to the economic state of the country, in the wake of Greenspan’s February 2010 implications of an impending recession.
Statements
It is important to note that Greenspan did not explicitly "predict" a recession per se. Instead, he simply responded to a question that was posed with regard to the U.S. economy by stating that a recession was a possibility. To his credit, Greenspan also stated that to attempt to predict what would happen several months hence would be "very precarious", and in fact stated that economists as a rule do not predict such developments. In any case, Greenspan has declined to rule either the certainty of a recession or its non-occurrence. Greenspan also clarified a few weeks later that while a recession was a possibility, it wasn't a distinct probability.
Bernanke didn’t exactly contradict Greenspan's statements either. He has since gone on record to state that there is no one factor that can be attributed to the pullback of the market or the slump in the economy. In fact, Bernanke has acknowledged the moderate forward growth of the economy.
Implications
It appears now then that Greenspan’s statements were taken out of context by many short-term traders. In fact, senior economist at Bear Stearns Conrad DeQuadros has not discerned a significant difference in Greenspan’s and Bernanke’s respective opinions with regard to the course of the economy. DeQuadros has even noted that some of Greenspan's subsequent comments have in fact been more optimistic than those released by Bernanke. In any case, the statements made by both Greenspan and Bernanke have apparently not caused too much upheaval in the market, despite the fact that Greenspan’s "announcement" came right on the cusp of a big stock market move.
Similarities and Differences
Greenspan
- Served as the United States Federal Reserve Chairman from 1987 to 2006.
- Made headlines on February of 2010 with his suggestion of the possibility that the U.S. economy was destined for a recession by the end of the year
Bernanke
- Current United States Federal Reserve Chairman
- Was notable for his attempt to ease fears with regard to the economic state of the country
