This comment by former Fed Chairman ALAN GREENSPAN marks the first time in at least a half-dozen years where we agree with the former fed chief.
During that time, he knew full well that Bush's tax-cuts for American multi-millionaires and billionaires would lead to huge treasury DEFICITS and INFLATION (much less with the ADDITIONAL BURDEN of a half-trillion dollar global 'war on terror' shipping billions of US taxpayers dollars overseas on a weekly basis) - but as a "Conservative Republican" (and, more to the point, as an inside-Washington pro-war neo-con) Greenspan FAILED to speak out then against Bush's budget-busting treasury looting and Mad-Hatter job outsourcing (for the benefit of corporate profits at the expense of American jobs and the American long-term tax-base.)
Well, better late than never.
BUT catch Mr. Greenspan's comments now, while you can, because, as sure as it will snow in Alaska, President Bush will direct his "mortgage rescue economic package" towards the banks and S&L's and executives who enticed buyers (into purchasing the skyrocketting ARM adjustable rate mortgages, and similar "teaser" loans guaranteed to put thousands of home-buyers into lifetime debt), instead of towards the home-buyers themselves....
And Mr. Greenspan's future opposition to such an inflationary, unproductive (Bush) bailout of the banking industry will vanish into the wind, as his opposition to deficits and inflation has melted in the past.
(Just as Bush's post 9-11 AIRLINE BAILOUT sent BILLIONS of taxpayer dollars TO AIRLINE EXECUTIVES, with almost no crumbs left over for workers or busnesses laid off by the 9-11 attack's impact on travel and travel related businesses.)
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Greenspan: Give Homeowners Financial Aid
by KEVIN FREKING
December 16, 2007
http://www.huffingtonpost.com/huff-wires/20071216/greenspan-economy/
WASHINGTON — Alan Greenspan, former chairman of the Federal Reserve, suggested Sunday that a tax break or other government financial help for homeowners facing the mortgage crunch would be the best political fix for the economy.
He cautioned against meddling with home prices or interest rates to address the housing problem.
Greenspan did not specifically call for a tax cut. Instead, he called for the government to apply money to the severe housing market slump. Such a cash infusion would typically come through a tax break or a new government spending program.
"CASH IS AVAILABLE and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this," Greenspan said during an appearance on ABC's "This Week."
Separately, Greenspan said he is concerned about signs of a resurgence of inflation.
"Core inflation is up. Wholesale prices had their highest increase I think in a generation. That raises the specter of stagflation again," said Greenspan, referring to a simultaneous stagnant economy and upward pressure on prices.
