Greenspan: No Second Stimulus, We're "Getting Close" To End Of Job Losses (VIDEO)

Former Fed Chairman Alan Greenspan said on Sunday that the U.S. economy was "getting close" to the point where it would stop losing jobs. But during his appearance on ABC's This Week with George Stephanopoulos, Greenspan also predicted that the level of unemployment would "penetrate the ten percent barrier" and stay at the level for some time before going down. Despite it all, he stressed, the administration shouldn't push for a second stimulus package to spur job growth.

Speaking days after it was announced that 263,000 jobs had been lost in September -- vaulting the unemployment rate to a 26-year high of 9.8 percent -- Greenspan was able to muster a bit of cautious optimism about the economy. He predicted that economic growth in the third quarter of this year would end up greater than his previously predicted 2.5 percent. "The numbers are coming in higher than that," he said.

On the job market front, however, there were not many rays of sunshine. Asked whether a second stimulus package was needed to kick-start additional growth, Greenspan was skeptical, saying at one point that "in trying to do too much you can actually become counterproductive."

"We are in a recovery and I think it would be a mistake to say the September numbers alter that significantly," he said. "It is true the last couple of weeks some of the numbers coming in have been a little bit soft. But this is what a recovery looks like."

There should be "no new stimulus for two reasons," he concluded.

"One is only 40 percent of the first stimulus has been in place," said Greenspan. "And there is a considerable debate going on in the economics profession about how effective this stimulus package is. And so, mainly because of the fact that as broad as it is and as effective as it will turn out to be you still have 60 percent left to go. In my judgment it is far better to wait and see how this momentum that has already begun to develop in the economy carries forward."

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Comments

[Siebenstein]

...and before you take a hike; thanks for kicking this country over the cliff..

[Siebenstein]

God, shut up and go away !

[joefoss]

>would someone please explain to me why alan greenspan, architect of the "less is more" federal anti-regulatory approach to financial institutions and one of the leading spokespersons for the delusional belief that wall street works best when left alone, is still invited on talk shows like "this week"?
wouldn't it be nice, once in a while, to ask one of the many economists and academics who warned about the dangers of de-regulation/no regulation and predicted the inevitable "crash" to appear?
>but, of course, i realize that expecting such behavior on the part of the corporate-owned media is,
in its own way, delusional. remember what happened, for example, after the vietnam tragedy:
henry kissinger, nixon's eminence grise and favorite target-picker for the secret bombing of cambodia,
packed up his nobel prize and opened a lucrative consulting firm (nbc paid him $1MM a year for his sage advice); while vietnam war critic [and real-life WWII hero] george mcgovern lost his senate seat and wound up managing a motel in connecticut.

[BLSabob]

Someone still listens to Greenspan? This man should be in front of a grand jury, not the media

[jacobomorales]

The US Media, what's wrong with it? Basically everything. With all the untapped sources of economic analysis in the country they continue to bring out the ones that have proven wrong and inept, over and over again. Why not speak to real economist who have clear and intelligent voices?

[sfsoma]

I don't trust a word that comes out of this man's mouth. Go away, Mr. Greenspan.

[bobwalters]

This lizard needs to go into permanent hibernation. He has NOTHING of any value to say or contribute, unless he wants to distribute his fortune to some group of homeless people -- those he's responsible, in large measure, for being homeless. Slither back under your rock, Alan.

[BLSabob]

What do you have against lizards?

[sheaintsayin]

Can we stop stroking this dude? He and his weepy self has done nothing short of rallying the raping of the Clinton surplus, and I find his supposed financial policy and oversight lacking in integrity, and his behavior inept and responsible for crimes against our financial selves. ShutThefupAlan.

[duxguts]

Isn't it funny, there was actually a time when people believed what this relic said.

[Iris Wood]

Greenspan's "Baaack"..­....

[Lee Andrew]

Hey George you still look very hot - in fact better than the last time I saw you years ago jogging around 'Dupont Circle' in your Lycra tights showing the world what _religion you are....

Hey George, as far as I know it was Greenspan that got us into this mess - as in he was one of the players. Additionally, who cares what he thinks its not his show any longer.

But George you know we all love those Greeks -

[ObamaWhereisChange]

Greenspan is a ferret

We wake up every morning expecting change & progress, and go asleep disappointed

good articles; http://iamned.blogspot.com

[jhoughton1]

Sorry, Alan - your credibility is shot, no matter how smart you've been in the past. You only get to create one world-wide economic train wreck per lifetime.

[mattyd123]

Let's get to the bottom of this.

http://www.zerohedge.com/article/bloomberg-responds-fed-foia-appeal-blasts-bernankes-hyperbolic-speculation-economic-collapse

[consumerist]

I wish this Zombie would shut up as there are many such zombies in this United States of Zombieland.