Check out the following sentimental logic.

“This will be a good year in the market. It may not be a great year, but it’ll be a good year. Greenspan isn’t going to let this fall apart,” said Michael Murphy, managing partner at the Piney Run Group in Baltimore. “There’s just so much respect for him, no one questions him. He’s the guy who moves the market. My concern is going to be for next year, when they try to replace him. You know how the market hates uncertainty.”

Flashback 1998…..

Rudi Dornbusch, a prominent MIT economic professor proclaimed in the Wall Street Journal “This expansion will run forever”. The U.S. economy will likely not see a recession for years to come. Because, Dornbusch asserts, and I’m not making this up: “We don’t want one, we don’t need one, and, as we have the tools to keep the current expansion going, we won’t have one.”

One question Mr. Michael Murphy, did Greenspan prevent the recession in 2001 that Rudi Dornbush thought impossible? Gee, what happened to the silly logic that we will not have a recession simply because “We don’t want one”? Flash forward 2005…. This will be a good year because “There’s so much respect for Greenspan” and unlike 2001, “He will not let this fall apart”.

How touching.

Mike Shedlock / Mish/