Archive for the ‘Greenspan’ Category

America’s economy risks the mother of all meltdowns

February 20, 2008

By Martin Wolf
Financial Times (London)
February 19, 2008

“I would tell audiences that we were facing not a bubble but a froth – lots of small, local bubbles that never grew to a scale that could threaten the health of the overall economy.” Alan Greenspan, The Age of Turbulence.

That used to be Mr Greenspan’s view of the US housing bubble. He was wrong, alas. So how bad might this downturn get? To answer this question we should ask a true bear. My favourite one is Nouriel Roubini of New York University‘s Stern School of Business, founder of RGE monitor.

Recently, Professor Roubini’s scenarios have been dire enough to make the flesh creep. But his thinking….

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Greenspan doubts Fed’s ability to prevent recession

January 30, 2008

BERLIN (AFP) – Former Federal Reserve chief Alan Greenspan cast doubt on the ability of the central bank to prevent a US recession in an interview to appear on Thursday.

Greenspan told the German weekly Die Zeit that the Fed or political policies could “probably not” keep the world’s biggest economy from sliding into recession, as financial markets widely expected the US central bank to cut its main lending rate.

“The influences of the global economy today are stronger than almost any monetary or budgetary response,” the German-language weekly quoted Greenspan as saying.

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America Going Soft?

September 15, 2007

By John E. Carey
September 15, 2007 

Did anybody notice that talking heads and politicians are now wearing the soft pastel necktie regularly? I remember when dark blue with stripes was the order of the day. England’s famed regimental ties were considered “classy” and they had meaning.

I have a little problem with pink, yellow and white ties.

Those pastel ties, believe it or not, remind me of the softening of America. We have nearly thrown in the towel in Iraq, a liberal blog accused the leader of the war effort of “betrayal,” and our movie stars (except for Russell Crowe and he’s an Aussie) are slim, lightweight and not overpoweringly manly — not that there is anything wrong with that.

John Wayne is dead — and in many sectors the one-time American icon is the butt of jokes.

The rise of women in America, a very good thing, has also prompted a kind of erosion into what a man is considered to be.

As the summer closes I am struck by two major news stories. First, we discovered this year that much of what you buy at WalMart, Target and Sears is made in China — and the standards and business practices of China are vastly different from our own. And two: former Chairman of the Federal Reserve said our nation gave up on standards like fiscal constraint which had served us well for decades.

You don’t hear many people talk about “standards” and “principles” very much and maybe it takes an octogenarian like Mr. Greenspan to remind us who we are and who we might be — with a little more restraint, wisdom and a dash of principles.

Sometimes the mantra of tolerance seems on the slipper slope to “anything goes.”

You don’t hear about hard work much either. Even President Bush says we need our immigrants (and the strong backs of people in other countries) to do the jobs “Americans” refuse to do.

A friend of mine in China commented at the height of the food and product safety scandals in China that the U.S. has outsourced and basically given away much of the manufacturing might that made America a superpower. His question is, “Would the United States have given much of its manufacturing to the Soviet Union during the height of the Cold War?”

This election season is a good time to talk about standards, principles and the big picture of our world view. I haven’t seen a lot of that except from newt Gingrich and he isn’t running. But there is still time and Americans are a hopeful people.

U.S. economy weakens further

Greenspan: Republicans Tossed Out Their Principles

Newt Gingrich: America Needs a New Debate

Greenspan: Republicans Tossed Out Their Principles

September 15, 2007

By John E. Carey
September 15, 2007

Alan Greenspan, former Chairman of the U.S. Federal Reserve says American Republicans “swapped principle for power. They ended up with neither. They deserved to lose.”

Bush abandoned the central conservative principle of fiscal restraint, said Mr. Greenspan.

He was the Chairman of the Federal Reserve for 18 years and the leading Republican economist for the past three decades.

Facsimile $50 Bill 

Mr. Greenspan’s new book puts blame of George W. Bush. In “The Age of Turbulence: Adventures in a New World, Greenspan says the current U.S. president failed to veto some bills to curb “out of control” spending while the Republicans controlled Congress. The result was an excess of government spending said Mr. Greenspan.

President Bill Clinton turns out the hero of this book but other Democrats get plenty of blame.

He said the Bush administration started out with many appointees with strong cost control standards and experience in the presidency of Mr. Gerald Ford. Over time, that core of principled hard liners left and the Republicans lost their way, according to Mr. Greenspan.

“My biggest frustration remained the president’s unwillingness to wield his veto against out-of-control spending,” Greenspan wrote of President Bush. “Not exercising the veto power became a hallmark of the Bush presidency. . . . To my mind, Bush’s collaborate-don’t-confront approach was a major mistake.”

Greenspan: Reps Traded Principle for Power; Lost Both

September 15, 2007

from The Wall Street Journal

Sept. 14, 2007

Former Federal Reserve Chairman Alan Greenspan says the Republican party to which he has belonged all his life deserved to lose power last year for forsaking its small-government principles. Greenspan delivers the withering critique in his memoir, “The Age of Turbulence: Adventures in a New World.”

In the book, scheduled for public release Monday, Greenspan writes that he advised the White House to veto some bills to curb “out of control” spending while the Republicans controlled Congress. He says President Bush’s failure to do so “was a major mistake.” Republicans in Congress, he writes, “swapped principle for power. They ended up with neither. They deserved to lose.”
Greenspan Says Bush’s Economics Driven by Politics (Update1)

By Matthew Benjamin

Sept. 14 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan criticized President George W. Bush for pursuing an economic agenda driven by politics rather than sound policy, with little concern for future consequences.

Soon after Bush took office, Greenspan wrote in a new book, it became evident that the Treasury secretary and White House economists would play secondary roles in decisions on taxes and other issues. In addition, officials with whom he had worked in the administration of President Gerald Ford changed after Bush brought them back to Washington, he said.

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