As Alan Greenspan speaks, stock market sinks

Were traders, near the stock market close Thursday, influenced by words from Former Federal Reserve Chairman Alan Greenspan, following an interview on CNBC by Maria Bartiromo?

Coincidence or not, the Dow Jones Industrials on the last day of July tumbled 205.67 points, with most of the drop coming in the last hour while Greenspan was facing TV cameras.

Commenting on the economy, Greenspan again brought up that dreaded “R” word: recession.  After he discussed foreclosures and mentioned home prices are “still nowhere near the bottom,” Bartiromo, recalling an earlier visit in which he said there was a 50-50 chance of a recession, asked, “Has that changed?”

Greenspan replied, “Strangely, no” and moments later added, “We’re right on the brink.”

Grumpy Editor finds that hasn’t changed much since June 24 when he told a Johannesburg conference via video link that the U.S. is “on the brink” of a recession and chances of that happening are “at more than 50 percent.”

Later, during Wednesday’s TV interview, Greenspan, who left his Fed post 30 months ago, said:  “Most importantly, the rest of the world’s growth rate is slowing down and we depend very critically on that.  That’s why I’m more inclined towards a recession side than not for the U.S.”

But he also said, “The American economy is holding up rather well, actually.”

Grumpy Editor’s end-of-week leftover notes:

CBS Corp., shrinking its radio operations, plans to sell 50 stations in mid-size markets.  This follows the sale last year of 40 stations in smaller markets…A. H. Belo Corp., parent of Dallas Morning News and Providence Journal, plans to offer employee buyouts, aiming to eliminate 500 full-time positions…TV news folks, attempting to make it a crisis, overplayed Tuesday’s earthquake that shook the Los Angeles area.  About the only graphic damage airborne cameras could focus on was an East Los Angeles broken water main that flooded an intersection…Cablevision Systems Corp. completed its $650 million acquisition of Newsday, Long Island, New York.  Cablevision and Newsday are now exploring ways to grow their advertising-based and subscription-based businesses.  Look for Cablevision’s cable systems in the New York area to pitch Newsday in commercials…Fortune Small Business, a Time Inc. publication, axed most of its editorial staffers this week and will rely on freelancers…While print media relish anniversary stories, they missed an event of 55 years ago:  Sunday marked the signing of the Korean War armistice, ending three years of fighting…Starting Sept. 7, Los Angeles Times readers will see LA, a new monthly magazine…Spokesman-Review, Spokane, Wash., shook up things by obtaining a list of people who received phony high school diplomas and college degrees issued by a Spokane diploma mill…Worst PR job of the week:  Telling the media about a messed up American Airlines baggage-handling system at New York’s JFK Airport.  Caused by a computer glitch Wednesday (and corrected Thursday), it resulted in flight delays and cancellations plus grumbling passengers --- and some sore AA employees backs, because each bag had to be sorted by hand…Hartford Courant no longer has a reader’s representative, a newsroom title since 1984, following the departure of Karen Young, laid off with 23 other editorial staffers.