Former Federal Reserve Chairman Alan Greenspan said a surge in U.S. government “activism,” including fiscal stimulus, housing subsidies and new regulations, is holding back the economic recovery.
Increased bond issuance by the Treasury Department crowds out borrowers with the weakest credit ratings, Greenspan said in an article in International Finance, published on the Web today. At least half of the shortfall in companies’ capital spending “can be explained by the shock of vastly greater government- created uncertainties embedded in the competitive, regulatory and financial environments” since the failure of Lehman Brothers Holdings Inc. (LEHMQ) in 2008, Greenspan said...
“Much intervention turns out to hobble markets rather than enhancing them,” said Greenspan, 84, who was appointed Fed chairman by Republican President Ronald Reagan in 1987 and served until 2006. “Any withdrawal of action to allow the economy to heal could restore some, or much, of the dynamic of the pre-crisis decade, without its imbalances.”
“Much intervention turns out to hobble markets rather than enhancing them,” said Greenspan, 84, who was appointed Fed chairman by Republican President Ronald Reagan in 1987 and served until 2006. “Any withdrawal of action to allow the economy to heal could restore some, or much, of the dynamic of the pre-crisis decade, without its imbalances
And I predict the reaction from the right will be blind support because the statement supports their views!
:smug:
We've been saying this forever.
The government needs to get the hell out of it, and it'll recover. Every intervention just adds another six months or a year to the recovery time.
I would say Alan Greenspan is the primary cause of the current economic crisis, who failed to see the multiple bubbles his economic policies created. His policies were a failure, and his judgement should be strongly questioned as a result.
This sentance says it all
The pre crisis decade was marked by extremely loose monetary policy, debt loads for business and individuals increased at dramatic rates, all influenced by the loose monetary policy that Greenspan promoted. Two large asset bubbles occured during his watch. The dynamism of the pre crisis decade was caused by the asset bubbles (debt bubble). It was a decade of lax government regulation but strong government stimulus in the economy. From deficit spending to monetary stimulus. Now despite the amazing powers of hindsight, Greenspan fails to see his policies were a direct and major contributor to the current economic crisis, so taking his viewpoint about the failure of the current economic policies should be done with a grain of salt
I would say Alan Greenspan is the primary cause of the current economic crisis, who failed to see the multiple bubbles his economic policies created. His policies were a failure, and his judgement should be strongly questioned as a result.
This sentance says it all
The pre crisis decade was marked by extremely loose monetary policy, debt loads for business and individuals increased at dramatic rates, all influenced by the loose monetary policy that Greenspan promoted. Two large asset bubbles occured during his watch. The dynamism of the pre crisis decade was caused by the asset bubbles (debt bubble). It was a decade of lax government regulation but strong government stimulus in the economy. From deficit spending to monetary stimulus. Now despite the amazing powers of hindsight, Greenspan fails to see his policies were a direct and major contributor to the current economic crisis, so taking his viewpoint about the failure of the current economic policies should be done with a grain of salt
I would say Alan Greenspan is the primary cause of the current economic crisis, who failed to see the multiple bubbles his economic policies created. His policies were a failure, and his judgement should be strongly questioned as a result.
This sentance says it all
The pre crisis decade was marked by extremely loose monetary policy, debt loads for business and individuals increased at dramatic rates, all influenced by the loose monetary policy that Greenspan promoted. Two large asset bubbles occured during his watch. The dynamism of the pre crisis decade was caused by the asset bubbles (debt bubble). It was a decade of lax government regulation but strong government stimulus in the economy. From deficit spending to monetary stimulus. Now despite the amazing powers of hindsight, Greenspan fails to see his policies were a direct and major contributor to the current economic crisis, so taking his viewpoint about the failure of the current economic policies should be done with a grain of salt
typical. you all loved him during the Clinton era and took credit for the massive bubbles for the so called surplus.
now it's all his fault.
I call this, having your cake and eating it too.
I didnt love Greenspan, I was blaming him for loose monetary policy in the 90s being a prime motivator for the tech bubble.
you are a huge exception then. most liberals still think Clinton was a genius for the surplus created primarily from the end of the cold war, the tech bubble, and accounting tricks involving public/private held debt.
That's almost as bad as blaming Bush and Obama for every woe or every success. I thought you were more reasonable than that.I would say Alan Greenspan is the primary cause of the current economic crisis,
The only thing I will Clinton credit for is not actually spending the extra money that was coming in due to the tech bubble (credit also goes to the republican controlled congress). This was different then the Bush admin which spent the extra money coming in and then some
As for Greenspan I believe he was against the potential of the government surplus's being used to pay down debt if I recall correctly. Another mark against him
cpwill predicts the reaction to this will be Ad Hominem.
That's almost as bad as blaming Bush and Obama for every woe or every success. I thought you were more reasonable than that.
.
FactCheck.org: During the Clinton administration was the federal budget balanced? Was the federal deficit erased?his point was that their was no surplus. it was an accounting trick by increasing intra-governmental holdings and decreasing public debt by the same amount.
the combination of public debt + intra-govt debt increased every year Clinton was in office.
see for yourself
Debt to the Penny (Daily History Search Application)
What single person had the most power over the direction of the economy? Who set interest rates, monetary policy and money supply. What one person could have stopped the housing bubble in it's tracks?
the politicians that brought us new deal and great society programs are the ultimate creators of these bubbles.
What single person had the most power over the direction of the economy? Who set interest rates, monetary policy and money supply. What one person could have stopped the housing bubble in it's tracks?
Apparently the person with hindsight.
Why do you need to ask questions to engage in the same scapegoating?
Bubbles existed before the new deal and great society and they will exist after
Bubble creation is a function of debt creation. Control the amount of debt being created and bubbles will also be controlled. Allow for a large amount of debt to be created and the potential bubble will be large. The institutions that control money supply are the ones who can help create bubbles (the environment required for one) or help prevent bubbles (eliminating the environment for one)
bubbles also existed prior to the implementation of fiat currency, but it wasn't as significant as they are now.
Control over the money supply (to inflate it) is far easier with a fiat currency then with a hard metalic based one. Making the generation of bubbles easier to build and maintain for periods of time
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