Democrats need to call for Greenspan to go

[dsc]

Greenspan raised rates several times in 2000 so that interest rates which began the year at 5.3% were 6.51% on election day. That is an increase of close to 1.25% which equates to five increases in the interest rate. This was done in a year with limited economic growth and virtually no inflation (on the grounds that inflation was a danger).

Now we have the situation where interest rates went from 5.91% in Jan 01 to 1.02% currently. This despite signs of economic growth and actual inflation. Combined with the tax cut nonsense it is clear that Greenspan is playing favorites here. He needs to go. If we don't get rid of him before his reappointment then we will be stuck with him. I will bet that before 2006 if Kerry wins, interest rates will be back at 6% if we keep Greenspan. Clinton and his economic team are responsible for the economic growth we had, not Greenspan.

On edit Link for rates

http://www.federalreserve.gov/releases/h15/

[bryant69]

1. Which Democrats Should Do it?

Do you think Kerry should make it part of his platform?

Do you think senators and representatives in Congress right now should call for it? Seems like both of those ideas have potential problems.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[dsc]

2. Senate Democrats would be best

They have to vote to confirm him. Even if we lose the Senate over it it would be worth it.

[bryant69]

3. Strong Disagreement

Even if we lose the Senate over it it would be worth it.

This is just plain wrong. There are hundreds if issues we care about and many of those issues are far more important than a bit of admittadly well-deserved political revenge. Issues that affect real human beings. While I do agree to a certain extent that we need a new man at the Federal Reserve, I'm not really enthusiastic about trading other goals for that.

[Monte Carlo]

4. A new Fed chairman is not worth the Senate.

The position is not totally above politics, but it is not arbitrary, either. There's a whole financial world out there, not to mention a board of governors, that acts as a review to keep the Chairman honest. Greenspan has been compromised, no doubt, but the position is not worth a majority in the Senate.

[pansypoo53219]

5. 1st he could die in office

and 2nd. let him let inflation get beyond his control and his name will be tied to Volker's.
damn I AM TOO YOUNG to know that name.

[NYCGirl]

6. Howard Dean already addressed this back in January.

Of course, he got beaten up for it...
http://money.cnn.com/2004/01/23/news/economy/election_dean_greenspan/

And according to the article quoted, back in 1999, none other than Dan Quayle said the same!

Excerpt:
Dean: Greenspan too political
Democratic presidential contender says Fed chairman's support of tax cuts is 'troubling."
January 23, 2004: 3:04 PM EST

LONDONDERRY, N.H. (CNN) - Former Vermont Gov. Howard Dean tried out a new tactic Friday while campaigning in New Hampshire, accusing Federal Reserve Bank chairman Alan Greenspan of making decisions that were "too political" and suggesting it may be time to replace him.

At an early campaign stop stop Friday morning, the one-time front-runner for the Democratic presidential nomination said that Greenspan, who has been chairman of the Fed board since 1987, has had a "long and distinguished career" but his decisions lately have been "troubling."

But in an interview later in the day, Dean said he has no desire to get rid of Greenspan.

In the campaign stop, Dean said that while he didn't think Greenspan himself is foolish, failing to oppose President Bush's tax cuts was "foolish enough" to warrant his replacement.