Greenspan Warns Deficits Endanger Economy

[Pacridge]

WASHINGTON (Reuters) - [size=-1]Federal Reserve Chairman Alan Greenspan warned on Thursday that unless lawmakers come to grips with spiraling U.S. deficits, the economy was at risk of stagnation "or worse."



"Under existing tax rates and reasonable assumptions about other spending ... projections make clear that the federal budget is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years," Greenspan told the Senate Budget Committee.



He said that while the U.S. economy was "doing well," the danger was that deficits would keep rising as a percentage of total national output.

"Unless that trend is reversed, at some point these deficits would cause the economy to stagnate or worse."

[/size]

 

[Hoot]

WASHINGTON (Reuters) - [size=-1]Federal Reserve Chairman Alan Greenspan warned on Thursday that unless lawmakers come to grips with spiraling U.S. deficits, the economy was at risk of stagnation "or worse."



"Under existing tax rates and reasonable assumptions about other spending ... projections make clear that the federal budget is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years," Greenspan told the Senate Budget Committee.



He said that while the U.S. economy was "doing well," the danger was that deficits would keep rising as a percentage of total national output.

"Unless that trend is reversed, at some point these deficits would cause the economy to stagnate or worse."

[/size]

What kills me about this is the House of Reps just passed their new 'bankruptcy law.'

I felt they should've allowed an escape for families that fall under horrendous medical bills, through no fault of their own, and will never be able to get out from under this debt.

In six months it will be more difficult to file bankruptcy, even if a loved one has an illness that financially wipes out any chance to keep your head above water.

Hardly seems fair with the obscene deficit spending by our government.

Of course, whoever said politicians were fair?

 

[Pacridge]

What kills me about this is the House of Reps just passed their new 'bankruptcy law.'

I felt they should've allowed an escape for families that fall under horrendous medical bills, through no fault of their own, and will never be able to get out from under this debt.

In six months it will be more difficult to file bankruptcy, even if a loved one has an illness that financially wipes out any chance to keep your head above water.

Hardly seems fair with the obscene deficit spending by our government.

Of course, whoever said politicians were fair?

Yes and several riders were proposed that would have allowed families who've suffer financial disaster due to medical tragedy to still file. They were all shot down without debate.