Alan Greenspan is "Worried"

[Mega]

Yes and so are the rest of us Al!
http://www.cbsnews.com/stories/2008/...n4418238.shtml
"The Fed is not a Magic piggy bank"

No kidding!
Mike

[Starving Steve]

Re: Alan Greenspan is "Worried"

Alan Greenspan's one percent interest rate policies are what caused the present economic debacle. The guy is a maroon.

One percent interest rate money set by the Fed forces everyone to take risks to make a return on capital, so the whole gamet of lending and investing malfeasance emerges. And here we are now.

The harm that the Fed's mis-guided policies have done to the economy has far out-weighed any good that the Fed's bail-outs and back-stops have provided. Rather than to give the Fed more powers, the institution needs to be abolished.

[D-Mack]

Re: Alan Greenspan is "Worried"

Alan Greenspan's one percent interest rate policies are what caused the present economic debacle. The guy is a maroon.

One percent interest rate money set by the Fed forces everyone to take risks to make a return on capital, so the whole gamet of lending and investing malfeasance emerges. And here we are now.

The harm that the Fed's mis-guided policies have done to the economy has far out-weighed any good that the Fed's bail-outs and back-stops have provided. Rather than to give the Fed more powers, the institution needs to be abolished.

He himself wrote that it's illegal 40 years ago

But the process of cure was misdiagnosed as the disease: if shortage of bank reserves was causing a business decline-argued economic interventionists-why not find a way of supplying increased reserves to the banks so they never need be short! If banks can continue to loan money indefinitely-it was claimed-there need never be any slumps in business. And so the Federal Reserve System was organized in 1913. It consisted of twelve regional Federal Reserve banks nominally owned by private bankers, but in fact government sponsored, controlled, and supported. Credit extended by these banks is in practice (though not legally) backed by the taxing power of the federal government. Technically, we remained on the gold standard; individuals were still free to own gold, and gold continued to be used as bank reserves. But now, in addition to gold, credit extended by the Federal Reserve banks ("paper reserves") could serve as legal tender to pay depositors.

http://www.321gold.com/fed/greenspan/1966.html