Mea Culpa of the Ages: Budget Gap Means Extending Tax Cuts a Bad Idea, Greenspan Says

[blazespinnaker]

http://www.bloomberg.com/news/2010-0...-tax-cuts.html

While eliminating the tax cuts now “will have a negative impact” on the economy, it will not have a “major” influence, he said. The choice between lower taxes and higher debt “is a tradeoff between bad and worse.”

If the U.S. makes a mistake by trying to reduce the deficit too quickly, “that’s a very reparable problem,” Greenspan said. The threat of expanding government debt beyond the country’s ability to borrow, opens “very dangerous possibilities,” he said.

[Starving Steve]

Re: Mea Culpa of the Ages: Budget Gap Means Extending Tax Cuts a Bad Idea, Greenspan Says

http://www.bloomberg.com/news/2010-0...-tax-cuts.html

Finally, an intelligent statement from Alan Greenspan, spoken in plain and simple English and not in his Greenspanese.

[flintlock]

Re: Mea Culpa of the Ages: Budget Gap Means Extending Tax Cuts a Bad Idea, Greenspan Says

Greenspan jumps in on this subject as if he had nothing to do with the deficit he's talking about. It's like watching an interview with the Captain of the Titanic talking about the pros and cons of sealing the leaks vs bailing.

[jk]

Re: Mea Culpa of the Ages: Budget Gap Means Extending Tax Cuts a Bad Idea, Greenspan Says

iirc greenspan testified before congress in support of the bush tax cuts, saying that otherwise the surpluses would pile up so high that the gov't, after running out of debt to redeem, would be forced to start purchasing private assets. really. i couldn't make it up.

[flintlock]

Re: Mea Culpa of the Ages: Budget Gap Means Extending Tax Cuts a Bad Idea, Greenspan Says

iirc greenspan testified before congress in support of the bush tax cuts, saying that otherwise the surpluses would pile up so high that the gov't, after running out of debt to redeem, would be forced to start purchasing private assets. really. i couldn't make it up.

Ha. Well seems it didn't work out that way now did it?