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Monday, August 29, 2005

Greenspan and the Bubble

Krugman: "Most of what Alan Greenspan said at last week's conference in his honor made very good sense. But his words of wisdom come too late. He's like a man who suggests leaving the barn door ajar, and then - after the horse is gone - delivers a lecture on the importance of keeping your animals properly locked up."

"Regular readers know that I have never forgiven the Federal Reserve chairman for his role in creating today's budget deficit. In 2001 Mr. Greenspan, a stern fiscal taskmaster during the Clinton years, gave decisive support to the Bush administration's irresponsible tax cuts, urging Congress to reduce the federal government's revenue so that it wouldn't pay off its debt too quickly. "

"Since then, federal debt has soared. But as far as I can tell, Mr. Greenspan has never admitted that he gave Congress bad advice. He has, however, gone back to lecturing us about the evils of deficits."

"A housing slowdown will lead to the loss of many jobs in construction and service industries but won't have much direct effect on the trade deficit. So those jobs won't be replaced by new jobs elsewhere until and unless something else, like a plunge in the value of the dollar, makes U.S. goods more competitive on world markets, leading to higher exports and lower imports."

"So there's a rough ride ahead for the U.S. economy. And it's partly Mr. Greenspan's fault." [NYT]

1 comment:

tetrasaure said...

Well of what I know of the evil banking instatution called the Federal Reserve which is not part of the government what so ever has cause so much trouble. Since inception in 1913 all it has done is caused trouble for the United States. Right now with all the credit troubles and with the control of the value of the dollar due to the Treasury Department basing the value of the dollar on a non governmental entity which induces large ammounts of credit to the american people the united states is only going to have more troubles. Right now I am not worried about the housing market, I am worried if some countries which have billions of dollars backing there currancy are going to just up and dump the dollars in favor of a more solid system.
Greenspan is a F%$#ing turd, and the 13 major credit beurous oops misspelling, but they are the evil of our country. Remember, the federal reserve has all of its meetings in secret, and does not have to report what they are doing to the Congress or anyone else. Beware of bankers, its a good way to get killed, look at Lincoln, he was shot for what he did with the dollar to win the civil war. If you also think that the dollar is worth a something, it is not. It is backed by the good faith and credit of the united stateds. Oops theres the flaw, credit, oops banking systems, oops your money isn't work the toilet paper in your bathroom.