Award winning economist says greenspan screwed the pooch

evince

evince

Truthmatters
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.
 
After the 2001 recession, the Fed cut its benchmark rate to a four-decade low of 1 percent. That move, along with a hands-off approach to regulation, has brought Greenspan under fire as the bursting of the housing bubble and the subprime mortgage crisis again threaten to sink the economy.
 
Whenever Greenspan too closely applied neoclassical teachings and was rigid in his giving out of liquidity, it caused the 2000 recession. Whenever he renounces those teachings after 2000 because they caused the recession and begins to be more liberal, it's his fault too.
 
Desh said:
After the 2001 recession, the Fed cut its benchmark rate to a four-decade low of 1 percent. That move, along with a hands-off approach to regulation, has brought Greenspan under fire as the bursting of the housing bubble and the subprime mortgage crisis again threaten to sink the economy.
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Sheesh, Greenspan controls business regulations? That's odd. I thought the Democratic congress did?
 
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.
 
Young Libertarian said:
I don't love you. That's ECON 101!
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Oh yeah. Maybe you do know something about economics.

Oh well.

I'm just saying, I had thought all you had ever read was "The Wealth of Nations". While it's an important book historically, there are far more accurate models of the economy today. Monetarism and the Austrian school are the two biggest with libertarians, although the Austrian school isn't taken very seriously by many economists.
 
It was a combination of historic low long term global rates {not controled by fed}

Plus 1% short term rates {controlled by fed}

Not soley Greenspans fault but he def has plenty of blame.

Also, no 9/11 no 1% rate and that's undeniable.
 
Watermark said:
Oh yeah. Maybe you do know something about economics.

Oh well.

I'm just saying, I had thought all you had ever read was "The Wealth of Nations". While it's an important book historically, there are far more accurate models of the economy today. Monetarism and the Austrian school are the two biggest with libertarians, although the Austrian school isn't taken very seriously by many economists.
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Yes. The only book I have ever read... ever... is the Wealth of Nations.

You are correct sir.
 
Watermark said:
Sheesh, Greenspan controls business regulations? That's odd. I thought the Democratic congress did?
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After the 2001 recession, the Fed cut its benchmark rate to a four-decade low of 1 percent. That move, along with a hands-off approach to regulation, has brought Greenspan under fire as the bursting of the housing bubble and the subprime mortgage crisis again threaten to sink the economy.

Where does he say Greenspan controls regulation?

Its the tax cuts, the too agressive cutting, and lack of oversight of industry by the congress of the time.
 
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