Former Fed chairman Alan Greenspan was on Sunday’s “This Week” and told George Stephanopoulos that the current financial crisis is a “once in a century” eventwhich he wouldn’t bet on leading anywhere except to recession. Gloomily, Greenspan explained how US house prices, now in freefall, underlie the US government paper that permeates the world economy - and that consequently the rest of the world is suffering even more than America is from a home-grown US financial collapse.
And, on Saturday the Associated Press reported remarks by Greenspan that clearly indicate he doesn’t think John McCain is the one to steer America and the world through that collapse.
“Unless we cut spending, no,” the former Federal Reserve chairman said Friday when asked about McCain’s proposed tax cuts, pegged in some estimates at $3.3 trillion.
“I’m not in favor of financing tax cuts with borrowed money,” Greenspan said during an interview with Bloomberg Television. “I always have tied tax cuts to spending.”
