So this Banker Walks Into a Bar

Who knew the Fed was so darn funny.
Well OK, not that funny, but the central bank released its transcripts from 2002 and I’ve collected some highlights.
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MR. STOCKTON. Thank you, Mr. Chairman. I was impressed at the last meeting with the creative language used by many members of the Committee to describe the economic outlook. So this morning I thought I’d try my hand at explaining the forecast using some of that language. To begin with the current quarter, I can report that—as the saying apparently goes—there has been about as much pumpkin as we had earlier anticipated though there is clearly less pumpkin now than in the third quarter.
CHAIRMAN GREENSPAN. It turned out to be seedy.
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MR. MCTEER. Mr. Chairman, I’m going to miss Jerry Jordan’s anecdotes and vignettes, but I might note that in this case I think he’s behind the curve. We’ve already done the research and found that forklifts are indeed a leading indicator, but backhoes are a lagging indicator.
CHAIRMAN GREENSPAN. It’s still a very uplifting thing.
From November 6, 2002
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MR. MOSKOW. For instance, the corrugated box industry, which had been showing signs of strength, now has flattened out, you could say. Or you could say that those manufacturers now view the box as half empty rather than half full.
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CHAIRMAN GREENSPAN. You say that with a smile? For the official record, we will indicate that he smiled.
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Moreover, we had a fascinating exchange at our recent advisory council meeting between the steel workers’ union leader and one of the country’s leading duck farmers. The issue was how retaliation to the steel tariffs by some of our trading partners is hurting other subsidized industries.
CHAIRMAN GREENSPAN. What a “fowl” thought!
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MR. JORDAN. Actually we were in Covington, Kentucky, so there were a lot of references to what it was like over half a century ago when the Chairman played with a band there. In fact, it was pretty exciting.
CHAIRMAN GREENSPAN. I don’t know if I should admit to this, but in the back room there were very peculiar things going on.
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MS. BIES. However, since I still have a house in Memphis for sale, I’m less inclined to believe that there’s a widespread bubble.
MR. GRAMLICH. Is that house for sale?
MS. BIES. Oh yes.
VICE CHAIRMAN MCDONOUGH. Still.
CHAIRMAN GREENSPAN. Are you bidding?
MR. GRAMLICH. No, I’m just pointing out that there’s a bubble.
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MR. BERNANKE. Mr. Chairman, I appreciate your analysis. I’m just wondering how you’re going to get all of that in the statement!
CHAIRMAN GREENSPAN. I wrote it in disappearing ink!
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CHAIRMAN GREENSPAN. Okay, I’ll try my best. I can’t guarantee that what I say will always come out the way I want it to. But I’ve been around long enough that I can put more words into fewer ideas than anyone else I know!

Posted by on April 11th, 2008 at 11:04 am


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