Greenspan Warns of Soaring Budget Deficit

[Radical__Moderate]

http://story.news.yahoo.com/news?tmpl=story&ncid=&e=4&u=/ap/20040211/ap_on_bi_ge/greenspan

WASHINGTON - Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) said Wednesday the U.S. economy has made "impressive gains" since last summer and predicted that even the lagging jobs market should perk up in coming months. But he also cited the soaring federal deficit as a risks factor, saying this problem must be addressed soon to avoid the threat of "serious longer-term fiscal difficulties."

[goclark]

1. Spineless Wonder

Greenspan is spineless. He knows this economy is in big trouble. Did it take him this long to see that the deficit is a problem?

[candy331]

7. Does a person have to go to their grave

still spineless? Greenspan go down in the history books as a man who cleared his conscience by finally telling the truth to save his country rather than die as a sniveling coward.

[joeunderdog]

17. When did he pick up on this problem?

Whew. It almost slipped by us.

Greenie's operating in his job in a way that is completely counterintuitive to a conservative economist. Too bad he's too scared to blink.

[Sagan]

2. Oh, NOW he wakes up?

Sorry, Alan. You've shot your credibility to hell.

[Frances]

3. Right

He testified before Congress before Bush's first tax cut and gave it his OK. If he had had backbone then, we would not be in the mess we are in today.

[BiggJawn]

5. Yeah we would.

Cheney would have fired him and hired someone more "compliant"...

[Yavin4]

9. Amen

Bush's first tax cut would have been scaled back considerably if it were not for Greenspan's endorsement in 2001. This man has used everything in his disposal to help Bush.

First we need to get rid of Bush. Next, we need to get rid of Greenspan.

[On the Road]

14. Greenspan and O'Neill Wanted Triggers

to rescind the tax cuts if budget projections went awry. They got some support in Congress but eventually Bush got Congress to accept no conditions.

Greenspan should have made more of an issue of it because he's allegedly independent. But the administration steamrolled him and left him looking like an idiot on this one.

[Fovea]

18. The administration is a steamroller

as Paul ONeill's book portrays.
I became a bit more sympathetic to Greenspan reading it.

This is the panicked Greenspan, the guy who says things like
'irrational exhuberance.'

Hold on to your hats, the market will take longer than
a day to really react to this.

[BiggJawn]

4. DUH! I can't balance my chequbook that well...

But even *I* could see this coming.
Enjoy your nap, Alan?

[bluedog]

6. cheney

when asked if he spoke to cheney about the deficits...greenspan wouldn't answer..the Democratic senator said...something like okay you won't but O'neill will...LOL

[bahrbearian]

8. What is the powers behind Cheney

There has to be something there. How could he scare Greenspan that much?

[MoonAndSun]

10. Has our "presumptive" nominee Kerry said what he will do about

Greenspan. Dean said he would replace him, what has Kerry said?

[mac2]

22. Why is Greenspan still there?

He mismanaged the economy and markets that led to a decline like that of 1929 (even more of a plunge). His interest rate increase put many software and technology companies out of business. They had been allowed to go into huge debt. There was huge margin borrowing and financial fraud in the market.

I remember. Senator Sarbanes. of the Banking Committee, questioning and worry about the debt and unemployed to Greenspan at a hearing.

Greenspan said, he didn't want to decrease the margin rates (remember all those day traders...trading on borrowed money?) because it would hurt the little guy. Between the debt and the corporate fraud...lying, plundering by CEOs, financial Wall Street thugs..the market plunged like a broken balloon. Wall Street thugs made money on the way up and down just on selling and buying.

Poof...three or four trillion gone just like that out of our markets and economy.

Where did that money go? Most likely to off-shore British islands like the Caymans and Bermuda. Queenie send back that money to our banks and economy.

Greenspan should have been gone long ago. He became part of the Grover Norquist/Newt Gingrich agenda to break our country with debt.

[LeftHander]

11. NPR reports only the impressive gains part

They left out the deficit part

[rodbarnett]

12. Yahoo is SPINNING headlines for both AP and Reuters

Greenspan Cites Impressive Economic Gains

http://story.news.yahoo.com/news?tmpl=story&ncid=&e=4&u=/ap/20040211/ap_on_bi_ge/greenspan


Greenspan:Economy Set for Vigorous Growth

http://story.news.yahoo.com/news?tmpl=story&cid=580&e=2&u=/nm/20040211/bs_nm/economy_greenspan_dc

[Just Me]

13. Seems like he always buries the painful stuff,...

,...in a long, drawn-out, intellectualized, prepared speech. Why can't he just say it plainly,...the broader American public is being left behind by radical capitalists because the greater social interests are not served via predatory capitalist pursuits!!! There has got to be a balance between the pursuit of purely self-serving capitalism and pursuing the best interests of society.

[sybylla]

16. Because the markets would tank

and our economy would crash. Greenspan intentionally hedges when he speaks because he knows that at least 50% of having a good economy is thinking you're having a good economy. When the consumers perceive that the economy is on the brink, he needs to be extra careful.

[Atlant]

24. Greenspan and plain-speaking...

Reminds me of an old joke:

A plumber wrote to the Bureau of Standards saying that he had found
hydrochloric acid good for cleaning out clogged drains. The Bureau
write back 'The efficacy of hydrochloric acid is indisputable, but
chlorine residue is incompatible with metallic permanence'. The plumber
replied that he was glad the Bureau agreed. The Bureau tried again,
writing 'We cannot assume responsibility for the production of toxic
and noxious residues with hydrochloric acid, and suggest that you use
an alternate procedure'. The plumber again said that he was glad the
Bureau agreed with him. Finally, the Bureau wrote to the plumber
'Don't use hydrochloric acid; it eats hell out of the pipes'.

[mac2]

26. Plundger's joke....

Debt eats the hell out of our economy and security.

[54anickel]

15. Uh, gee Al, day late and 7 TRILLION dollars short! (and counting)

[mac2]

19. Franklin said it best..

"He that goes a borrowing goes a sorrowing." Benjamin Franklin

[rodbarnett]

20. Dow Up 68 After Greenspan's Report

NEW YORK (AP) - A bullish economic report from Federal Reserve Chairman Alan Greenspan sent stocks soaring Wednesday. The markets responded immediately after spending the morning in negative territory. In early afternoon trading, the Dow Jones industrial average gained 68.36, or 0.6 percent, to 10,682.21.

Broader stock indicators also rose. The Standard & Poor's 500 index was up 7.06, or 0.6 percent, at 1,152.60, and the Nasdaq composite index climbed 5.91, or 0.3 percent, to 2,081.24.

Greenspan, in testimony before Congress, remained optimistic that unemployment would go down and revised upward a 2004 gross domestic product forecast. He reiterated the Fed's current stance that it could remain patient before eventually raising interest rates.

http://apnews.myway.com/article/20040211/D80L758O0.html

[llmart]

25. Yes, the Dow will soar...

for one day and then start it's slide down again. Remember about two weeks ago we had a "one-day" recovery? Greenspan thinks he can convince us middle class folks that all is well. Well, some of us aren't buying into it.

[Bandit]

21. I'm sorry but I just don't find Greenspan credible.

When the 2000 campaign was in full swing Greenspan said Tax Cuts would be a very bad thing to do. After Bush* was selected Greenspan said it was a smart thing to do. He is no longer credible IMHO.

[mac2]

23. Credible?

No..he's a Neo Con thug and liar. See my post # 22 above.

[indepat]

27. No s**t, Mr. Chairman, but GWB is already pandering to his base about

those lousy Democrats wanting to raise our taxes (rescind the cuts in the highest marginal rates). Wonder how Chairman Greenspan would address the deficit issue without raising our taxes?

[toopers]

32. Actually, he said it was not the tax cuts, but

the spending that is the problem So, he would say to cut the programs.

[concord]

28. NOW? A Warning?!

::: she says in her best Meryl Streep voice :::

[Bandit]

29. President Clinton managed a great economy in spite of Greenspan

Not because of him. In fact Greenspan did everything within his power to slow Clinton's economy down. Constantly raising the rates and punishing small investers. Greenspan is almost as bad as Novak as far as being a patriot.

[yellowcanine]

30. Uh Oh - Increases in interest rates coming.

Does anyone remember stagflation? Greenspan does. He will do everything in his power to stop it, even if it takes another recession. He also can't wait - will have to do something now because of the lag factor. Bush is toast.

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