Award winning economist says greenspan screwed the pooch

Greenspan did a really fine job, sure he contributed to the mess we are in. But congress ie both sides are pushing Ben to cut rates hard already. There is this thing called the business cycle, a recession comes on average about every 7 yrs and we are due. But we want short term rewards over long term stability. If the fed keeps cutting hold on the inflation rate will skyrocket.
 
Monetary policty 100 times more important. Fiscal policy usually is poor unless it's tax and spending cuts which never happen. You want a boost, cut spending and decrease taxes otherwise stfu.
 
that was funny
and I did see you post right after him on another thread, kudo's to you then for the nice asshat slam

National Collaborativist is about three paygrades too high for me.
 
Obfuscate said:
Monetary policty 100 times more important. Fiscal policy usually is poor unless it's tax and spending cuts which never happen. You want a boost, cut spending and decrease taxes otherwise stfu.
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That's simple logic. Cutting spending right now wouldn't help the economy at all. It would hurt it.
 
when you save a bank hires somebody and SPENDS to pay them.
When you borrow a bank hires the loan officer and SPENDS to pay them.
 
gonzojournals said:
We must stop the globalist fascist noahide Jew Bankers and their military industrial complex of doom that enslaves the people that free people are forced to compete with in order to maintain the capitalist dog hegemony of the corporationy corporations that make money off of the blood of virgin babies boiled by the Zionist aliens that live in my head.
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Were you ever able to wrap your weak-ass mind around the basic concepts of fiat currency?
 
Topspin said:
when you save a bank hires somebody and SPENDS to pay them.
When you borrow a bank hires the loan officer and SPENDS to pay them.
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Also, when you save, the bank uses that money for loans and generates income over the long haul through interest on the loans. Those loans go towards small businesses looking to expand, individuals looking to start a business, people wanting to buy a home... etc. Basically, saving helps the economy.
 
Watermark said:
That's simple logic. Cutting spending right now wouldn't help the economy at all. It would hurt it.
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No it wouldn't, It would decrease the deficit, make the dollar stronger, put money in peoples pockets to spend and increase efficiancy. The last thing we need is the Government spending more money than they have.
 
Desh said:
http://www.bloomberg.com/apps/news?pid=20601103&sid=abh8h7M3uKBA&refer=us

Has very discouraging things to say about the economy.



Greenspan `Mess' Risks U.S. Recession, Stiglitz Says (Update4)

By Reed V. Landberg and Paul George

Nov. 16 (Bloomberg) -- Joseph Stiglitz, a Nobel-prize winning economist, said the U.S. economy risks tumbling into recession because of the ``mess'' left by former Federal Reserve Chairman Alan Greenspan.

``I'm very pessimistic,'' Stiglitz said in an interview in London today. ``Alan Greenspan really made a mess of all this. He pushed out too much liquidity at the wrong time. He supported the tax cut in 2001, which is the beginning of these problems. He encouraged people to take out variable-rate mortgages.''

Stiglitz said there is a 50 percent chance of a recession in the U.S. and that growth will certainly slow to less than half of its 3 percent potential. A worldwide jump in credit costs following the collapse of the subprime mortgage market is choking off finance to American consumers.
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As we talked about recently, it was NOT the tax cuts and NOT the interest rate cuts that put us into this mess.

It was the fact that Congress increased our national debt by massive amounts which lowered the value of the dollar by about 40%. It was the fact that the fed kept rates low for too long. It was the fact that Congress (and the WH) throughout the 1990's and Bush era continued to loosen credit practices and "encourage" lending to those not qualified all for the sake of "having more people owning their own homes".

But most importantly, it was borrowers taking on more and more debt to the point they could no longer afford the payments should interest rates go up. Some of these individuals did it right out of the gate by buying more home than they could afford. Others kept borrowing against home equity under the idiotic assumption that real estate values would always go up. The lenders are equally culpable in the fact that they loaned them the money.

Wall street is also partially responsible in their facilitation of packaging the loans into investment vehicles such as CDOs and SIVs.

There is plenty of blame to go around. Greenspan had a hand in it to be sure. But so did a lot of other people. Trying to blame it on one person or one administration is ridiculous.
 
Topspin said:
when you save a bank hires somebody and SPENDS to pay them.
When you borrow a bank hires the loan officer and SPENDS to pay them.
Click to expand...
This assumes that I am saving in a bank. That could be a false assumption. What about the person who puts their cash in a jar?
 
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