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Greenspan says Government Activism Hurting Recovery

cpwill

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cpwill predicts the reaction to this will be Ad Hominem.

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.”
 
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And I predict the reaction from the right will be blind support because the statement supports their views!

:smug:
 
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.

“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

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
 
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 predict puppies!
 
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.

The only problem being, one cannot "fundamentally transform the Untied States of America" without gargantuan intervention.
 
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 have to agree partially with Greenspan, and also partially with this post. Greenspan left the interests rates low for far too long.
 
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

Yep. Greenspan claimed there was no housing bubble even when it was about to burst. He talked like he knew everything, but he is just a fool.
 
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.
 
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.
 
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.
 
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.

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
 
I would say Alan Greenspan is the primary cause of the current economic crisis,
That's almost as bad as blaming Bush and Obama for every woe or every success. I thought you were more reasonable than that.

But even if you want to try and scapegoat billions of individuls who made conscious choices to take out loans for things they couldn't afford, or distribute loans they knew could be defaulting, or rated sub primes as AAA.....on one person...well.

Greenspan was working as an instrument of Government before and during the economic crisis. So, you actually agree with his sentiment that government is the problem.
 
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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

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)
 
cpwill predicts the reaction to this will be Ad Hominem.

Apparently you don't get it. While I agree that there shouldn't be complete economic regulation, we saw what happened when we had little to no regulation and that bought the global economy to the brink of collapse.
 
That's almost as bad as blaming Bush and Obama for every woe or every success. I thought you were more reasonable than that.
.

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?
 
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)
FactCheck.org: During the Clinton administration was the federal budget balanced? Was the federal deficit erased?

http://www.cbo.gov/ftpdocs/108xx/doc10871/HistoricalTables.pdf
 
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.
 
the politicians that brought us new deal and great society programs are the ultimate creators of these bubbles.

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)
 
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?
 
Apparently the person with hindsight.

Why do you need to ask questions to engage in the same scapegoating?

Why do you let those responsible off the hook? Greenspan had the greatest impact on creating the housing bubble. His cheap, easy money policies were instrumental in creating the bubble and it's collapse.

People in denial will never learn from their mistakes. They didn't learn from the Savings and Loan collapse and repeated history. Insanity is doing the same thing over and over and expecting different results. Bush trying to get everyone to own their own home didn't help much either.

As for hindsight. I work in the housing sector and could see exactly what was happening and that the collapse was inevitable. Building 20 years worth of homes in three years was the giveaway.


Scapegoating? The housing bubble didn't just happen, it was created.
 
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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.
 
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
 
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

that's my point. debt creation itself is far easier, and the desire to create debt is directly tied to great society and new deal programs. so these programs can be blamed for a good portion of every bubble that has come about in the last century.
 
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