Greenspan: Home Prices Not Hurting Economy

[wicket]

http://news.yahoo.com/news?tmpl=story&u=/ap/20041019/ap_on_bi_ge/greenspan_debt

The record level of debt being carried by American households and soaring home prices do not appear to represent serious threats to the U.S. economy, Federal Reserve Chairman Alan Greenspan said Tuesday.

Greenspan said that high levels of personal bankruptcies were a concern because they indicated "pockets of distress" among American households. But he said the vast majority of U.S. consumers "appear able to calibrate their borrowing and spending to minimize financial difficulties."

-snip-

Some economists have expressed concerns that the big rise in home prices could represent a bubble that may deflate just as the stock market bubble did starting in the spring of 2000.

Greenspan, however, said it was unlikely that either the high level of household debt or the big rise in housing prices represented serious threats to the economy because Americans appeared to have sufficient resources to keep meeting their loan payments.

----------------------------------------------------

Greenspan needs to change his name to GreenSPIN. He's such a whore for the Bushies.

[bemildred]

1. Pay no attention to the little man behind the screen.

War is peace.
Freedom is slavery.
Ignorance is strength.

[cmf]

2. Sometimes I think he's going senile

or at least smoking crack.

But you're probably right, he's just a whore.

[i_c_a_White_Ghost]

3. I think the old man needs Andrea Mitchell

to spark his little pecker talking points

[Lost4words]

26. Andrea Mitchell is the trophy wife,

There is something distasteful about someone named greenspan getting in bed with fascists. But I think he has learned the GOP motto very well, You can go Fuck Yourself America cause I've got mine.

[mom cat]

4. Welcome to Fantasy Land! Just ignore the "pockets of distress".

None of his billionaire friends are distressed. How are we supposed to calibrate our mortgage payments when local taxes are escalating in order for cities to make up for the Bush-based drop in federal funds to cities. All of this with real wages going down the drain. Once again it is clear that *co only cares about the super rich, As for the rest of us in those "pockets of distress": tough luck! :argh:

[w4rma]

5. Greenspan is now just a Republican Party hack. (nt)

[ixion]

11. he was ever anything else?

I personally blame him for starting our current recession, by increasing intrest rates to 'head off' inflation, although inflation was not occuring at the time.

The result was the recession, and the subsuquent dot.com bust.

[KalicoKitty]

6. Well, well, well…..

IMO, that old fart should be put out to pasture. He has lowered the interest rates – what? - about a dozen times since DumBya stole office!!!

Inflation IS accelerating while labor costs do not!

He raised the rate during President Clinton’s term. You know, the Republicans never gave President Clinton any credit. They say it was not Bill Clinton who brought prosperity; it was the House Republicans and Alan Greenspin.

Well, guess what? We still have the House Republicans. We still have Alan Greenspin. And where's the economy? Still in the gutter, just like the Reagan/Bush years.

The federal budget deficit was at a historic high of $290 billion, when President Clinton was ELECTED the first time. 10 million Americans were out of work and the nation's economic growth rate under the outgoing Republican administration was the lowest in more than half a century. Clinton introduced his controversial economic plan that raised the income taxes of the richest 1.4 percent of Americans.

It is not the wealthy who are buying. The top 1% spend their money on foreign trips, luxury items, foreign investments or the simply hoard their money. They also know how to cheat on taxes.

When the U.S. economy entered a recession in March 2001, President Bush claimed tax cuts were the solution. Although the recession officially ended in November 2001, the economy remains weak, especially when viewed through the eyes of workers.

But, Bush claims everything looks good and his tax cuts are the reason. True? No. Economists from The Brookings Institute, the Center on Budget and Policy Priorities, the Tax Policy Center and Economy.com say that current and future growth are lower because of Bush administration policies.

This recovery-

GDP growth has been exceptionally weak. The 2.5% annual rate (as of 1 st quarter 2004) is one of the lowest during any Presidential term since World War II.

Employment is lower today than when Bush took office. Hoover was the last President to preside over an economy with net job losses.
The average duration of unemployment is one of the longest since the Great Depression. The early 1980s, when the unemployment rate was 10%, was the only other time workers went without work for so long.

There has been an unprecedented decline in labor force participation. If the participation rate had not fallen, the unemployment rate would have averaged over 6.5% during President Bush’s term.

When compared with other recoveries, in the 10 quarters since the recession ended (4 th quarter 2001 – 2 nd quarter 2004), wages and salaries as a share of total national income growth have never been lower (15.1%). Profits as a share of income growth are at a record high (46.9%).

Real household net worth has fallen since President Bush took office. It increased in every other Presidential term.
Personal bankruptcy and mortgage foreclosure rates are at or near record highs.

Sources: Economy.com, Center on Budget and Policy Priorities

http://uaw.com/resrch/rbart.cfm?rbid=14

[On the Road]

7. Big Mortgage Payments Have Nothing to Do With Bankruptcies?

I think it's one of the most common reasons. And if housing prices do fall, there will be a surge in bankrupticies as people try to escape all those houses with negative equity. Which will in turn impact the lenders just as it did in Texas in the 1980s.

[debatepro]

8. Can President Kerry fire him?

???

[daa]

9. Home prices no problem

inflation no problem, lots of good jobs with benefits, high oil no problem (especially if you have a taxpayers provided limo), the soft patch is over. This guy has stayed WAY too long.

[proReality]

10. I'd love to see this man's bank account

and who wrote the buy-off checks to him.

[booksenkatz]

12. Borrowing and spending

A middle-class household that has to fall back on a credit card to pay for milk, bread and cereal... to pay for a tank of gas... to buy a pair of shoes... because the mortgage, utilities and health care use up all cash on hand first... that is NOT a healthy household.

[EndElectoral]

13. Look at the friggin Employer Cost Index..is he nuts? ..link below

http://data.bls.gov/servlet/SurveyOutputServlet?request_action=wh&graph_name=EC_ectbrief

Wages going down while benefits costs going up so that employers drop benefits. This is so damn obvious. Why don't people see it? It's the government's own statistics.

[llmart]

14. OK. This one takes the cake.

How many more times before the election is this old fogey going to go out on a limb whoring for Bush? He should be ashamed of himself. Is he really that out of touch with the average household or is he just another Colin Powell who has sold his soul to please Bush? He needs to step down.

[wicket]

16. I hope one of President Kerry's first moves...

...is to fire Alan Greenspan. He's totally lost it and has no credibility whatsoever.

[barb162]

15. he has lost all credibility just like Bush; amazing how this guy had

problems under clinton when the economy was doing great and when it is just barely dragging along, he sees no problems with anything. When we have the lowest interest rates in decades and the economy is not picking up and the employment picture is not picking up at all, there are MAJOR PROBLEMS. But this guy all of a sudden hears, sees and speaks no evil the last 4 years.

[wicket]

17. kick

:kick:

[ProfessorGAC]

18. The Professor: Greenspan Utterly Clueless

Who does this idiot thinks builds those homes? It's other consumers Al. If the home starts go down, that's tradesmen with less cash. Less cash from an employment sector this large means lower monetary velocity in the system.

You remember monetary velocity, don't you Al?

What a moron.
The Professor

[freestyle]

19. People spend less to pay off what they borrowed

That is how the calibration works, at least in my house. People can't go into debt forever and it eventually has impacts as people must devote more income to debt service and less to discretionary spending. I don't how a major reduction in consumer spending can not have an impact, but then I can only do regular math. Also, how can rising home prices and falling incomes not create a problem as new homebuyers are stretched to make their payments and people who were suckered into cashing out some equity start to fall behind? We are for a world of hurt in this economy, and there is no way the market can absorb the mass sell-offs triggered as the boomers begin to draw down their 401k plans. Oh well, nothing to see here. Greenspan is rich already and will probably be dead by the time the shit really hits the fan.

[wicket]

20. kick

:kick:

[otohara]

21. He Makes Me Sick - Home Prices Out of Control

Greenspan in bubble of rich white republicans who can afford to buy $300,000 - million dollar homes.

no problem here, time to move on

[Yo_Mama_Been_Loggin]

22. Uh huh

If you're one of the lucky people, like myself, who bought their house before the prices went through the roof. Then again many of us are paying higher property taxes on our homes that have appreciated in value.

[mtnester]

23. Shut up and get your resume ready fat boy

no offense meant to large people or boys.

[Lost4words]

24. IMO, Greenspan is a piece of meard.

As long as the Greenspans can vacation at their place in the South of France, why should he/they give a shit about the average American's financial situation.

I will never forget his 24 hour flip flop on cutting taxes. After the appointment of Dimson he publicly stated his opinion on tax cuts, he was totally against any cuts. The next day after a meeting with little krap-ass he stated in a most convoluted way that that Limited tax cuts could have a positive effect on the economy.

Fuck you greenspan you piece of stinking meard. Nice to see you have strong convictions which change with the prevailing wind.

[wicket]

25. Greenspan sold us out!

:grr: