Greenspan Warns U.S. on Budget Deficits

[twaddler01]

WASHINGTON - With just three months left before he leaves office, Federal Reserve Chairman Alan Greenspan raised a warning to Congress: The country could face "serious economic disruptions" if bloated budget deficits are not curbed.

The Fed chief's strong comments, made during an appearance Thursday before Congress' Joint Economic Committee, come after the government produced a $319 billion budget deficit this year — an improvement from the record amount of red ink registered in 2004 but still the third-highest deficit on record.

In the short term, costs related to rebuilding after the trio of devastating hurricanes will make it harder to improve the nation's balance sheets, he acknowledged. In the long term, a huge wave of retiring baby boomers will put massive strains on government resources, he said.

"There are no easy choices. Easy choices are long gone," said Greenspan, whose 18-plus year run at the Fed comes to an end on Jan. 31.

Congress is working on separate packages of tax cuts and spending cuts.

http://news.yahoo.com/s/ap/20051103/ap_on_bi_ge/greenspan

[Jacobin]

1. Greenspan was warned that tax cuts would lead to deficits

who is he kidding?

:shrug:

[Nite Owl]

7. He wants Social Security and

Medicare cut. Tax cuts for the rich were ok but ordinary people should fend for themselves. He's a typical repuke, got mine so FU

[ignatius 2]

15. Was warned? He was the one doing the warning,at least when Clinton was

president. Finally,after 40 years of deficits,under Clinton we had a balanced budget and a $250Billion SURPLUS.

Then Greenspan does a fucking 360 and endorsed the tax cuts because he trusted the people more with their own money than the government.

Now we are approaching a $400 Billion deficit and he is concerned?

I have a great idea,you old toad,rescind the tax cuts on the top 5% of wage earners.

[Yo_Mama_Been_Loggin]

17. Greenspan must be going senile

Good riddance to him is what I say.

[brentspeak]

2. He's only become aware of this recently

Up until a few months ago, Greenspan kept his mouth shut about Bush's deficits.

[blm]

12. Funny how he didn't KNOW this all last year before the election

and when Kerry warned of the dangers of the bloated deficit, Greenspan chose to keep quiet about the truth.

[Burried News]

3. It's gonna be hard staying irrationally exuberant with Greenspam

gone. Stop by again when you can't stay so long.

[Inland]

4. Greenspan suddenly re-discovers deficits on his way out the door.

Thanks for your help. Talk about a guy who stayed on ten years longer than he should have.

[nookiemonster]

5. No shit Sherlock!

Isn't it time for Andrea to change your diaper?

God, I hate these people!

:mad:

[NMDemDist2]

6. he "warns" them on every visit, never seems to scare them though n/t

[Jacobin]

9. He supported the massive tax cuts

He is part of the problem, not part of any solution

[Frustratedlady]

8. So, where are we going to stand

when the Baby Boomers retire, a high percentage of the jobs are out-sourced overseas leaving lower tax revenue, and Georgie's credit card total hits the fan? He wanted to spend the capital and I think he's "gone and done did" just that, in more ways than one!

[BillZBubb]

10. Greenspin is nauseating!

What a friggin cretin. He knew exactly what Bush's policies would do but he was a cheerleader the whole time. Now, on his way out the door, he pops off with this. What a phony.

It's legacy time for Greenspin, so now he "warns" everyone. Later, when the inevitable results of HIS failed policies kill us, the talking heads and historians will all say how wise and insightful he was and that we should have listened to his warning.

[AndyTiedye]

11. We Had Budget SURPLUSES Under Clinton!

What was so bad about peace and prosperity anyway?

[Roland99]

13. We also had economic prosperity based largly on a fluke: Internet Commerce

and that came crashing down when the dot-com bubble burst.

[AndyTiedye]

18. No Fluke

That was no mere bubble, that was the new economy being born.
Naturally, those who were most associated with the old economy
wanted to strangle it in the cradle, so they loosed the Enrons
and the Halliburtons on us to suck all the money out of the economy,
then started a fruitless and horribly expensive war which drains away
even more money.

They certainly haven't done away with internet commerce or the new
economy, but they have drained so much money out of the economy, new
and old, that it will be a long time recovering even after they are
out of power.

[Roland99]

20. I just don't see it that way and neither do many others.

When venture capitalists were pouring billions and billions into unproven company with shaky business plans and when stock prices had P/E ratios of over 11,000 to 1 (Ebay hit over 11,000 to 1 at one point), then it's a highly overinflated economy.

[depakid]

19. Many of Clinton's policies set the stage

for economic difficulties in the 2000's.

People think he worked some kind of economic miracle, and they forget just what a dismal job his administration did with their deregulatory policies and so called "free" trade initiatives.

(not to mention of course, that Clinton himself re-appointed Greenspan)

[madmark]

14. A day late and a dollar short Greenspan, you sh*thead.

Where were you 4 and a half years ago when you gave Bushco and Congress the greenlight to flush our fragile national financial discipline down the toilet, discipline that took almost 2 decades to get a handle on. This is the real catastrophe of the Bush Administration and in the future it will make Iraqnam look like a paper cut.

[Rex]

16. Thanks for waiting so long you dumbass!

Good to see you just sitting on your thumbs as America dies. :eyes: Does anyone have use for Greenspan?