Irrational exuberance. This is the term former Federal Reserve Board Chairman Alan Greenspan used to describe the stock market on December 5, 1996. It was a period when investors had seemingly lost all sanity. Few heeded his warning. Three years later, stock markets worldwide crashed, eventually wiping out $5 trillion in value, primarily in technology companies.
Enter 2014. On June 25, the Commerce Department announced the U.S. economy shrank by -2.9 percent. This is not only the worst GDP pace for the same three-month period since 2009, it marked the steepest downward revision from second revision estimates since records began in 1976. The announcement was preceded by a dip in consumer confidence. According to Gallop, fully 58 percent of Americans say the economy is getting worse. Read More