Greenspan Warns Against Stagflation, Calls For More Aid To Homeowners

AP:

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.

Read the whole story: AP

Comments

[JimK2]

Greenspan who lowered interest rates 20 times trying to get Bush elected over Clinton in 1992.

Greenspan who raised interest rates in an election year to burst the speculative dot com bubble to damage economy, hurting Gore in 2000. Tightening margin requirments would of have been a better choice.

Greenspan who during 2001-2007, letting the money supply grow 4 times faster (13% per year)than the economy. This cheap money caused the housing bubble and sup-prime mess.

[Erdgeist]

Don't you just love these guys? Guys like Greenspan believe in the "invisible hand" of laissez-faire capitalism when it come to fleecing the average American. But when Wall Street is in peril, the government has to step in and protect the fat cats from the invisible hand.

[andyboy]

I guess Alan couldn't see what was going on all those years while he was lowering rates. Who could have known there were predatory lenders out there? Funny. We have all been reading and hearing about them for years now.

Alan's wisdom is predicated on his feigned ignorance. Cavalierly proposing the need for huge government bail-outs of our mortgage industry. Acting as if it was just some kind of unforseen circumstance. Turning his back and keeping his mouth shut like this should get him a Federal Prison sentence. Not star turns on National TV.

[ImmanuelGoldstein]

Somebody explain to me again how using taxpayer money to prop up inflated housing prices is good for the economy? Because I sure missed the explaination of what I'd think to be a pretty salient point. Isn't that like cutting one end of your blanket, sewing to the other end and claiming you have lengthened your blanket?

[nagamaki]

greenspan's solutions are always the same, a band-aid approach where the money ends up back in the pockets of the same business people that created the problem in the first place.

[realitytrumpsbull]

Tent, 400 dollars...

[tompoe]

I'll never forget Greenspan's pledge to Bush to assist with the rape and pillage of our country. I agree wholeheartedly with the earlier posters who demand to know why this jerk continues to be given a platform to legitimize his presence.

[dryfactoidobotanoid]

Greenspan is a Keynesian now? wtf.

[WorkingClass]

Why are we bombarded with Greenspan said this and Greenspan said that? His whole career is lies. Will we never be rid of him?