Greenspan: U.S. in recession - recommends settling the crisis by committing taxpayers' money [View All]

[cyberpj]

We did it - but you have to pay for it. Again. Anyone surprised?


Greenspan, on CNBC: U.S. in recession
Tue Apr 8, 6:28 PM ET

WASHINGTON (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Tuesday the U.S. economy was in recession, and said it would be appropriate to tap public funds to resolve the mortgage-related crisis that has helped pull the economy under.

snip -
In an interview with CNBC television in which he defended his chairmanship of the U.S. central bank against charges that his policy missteps had laid the groundwork for the current crisis, Greenspan said Fed decisions on his watch were rationally constructed based on evidence at the time.

snip -
The U.S. economy will not stabilize until housing markets recover, Greenspan said. To speed that process, the Bush administration should look to the 1980s savings and loan crisis for lessons on settling the crisis by committing taxpayers' money to the project.

"I think if you're going to deal with a situation like this it's an issue for appropriated funds of the Treasury to set up something like the Resolution Trust Corporation, which as you remember was very successful in resolving the S&L crisis," Greenspan said.

article:
http://news.yahoo.com/s/nm/20080408/bs_nm/usa_economy_greenspan_dc;_ylt=AjVZDRRisxwVbbje8juGajioOrgF