Whaddya Know? Professional Economy Wrecker Alan Greenspan Is at the Heart of the Insidious ‘Fix the Debt’ Campaign
Mr. Incompetent rears his ugly head in corporate deficit hawk coalition.
December 24, 2012 |
Alan Greenspan will go down in history as the person who has done more damage to the U.S. economy and society that anyone who was not a foreign enemy. In fact the destruction he wreaked through his incompetence would also exceed the damage caused by almost all would-be enemies as well.
Greenspan accomplished the remarkable feat as Fed chair of ignoring the growth of the $8 trillion housing bubble. This bubble could not have been easier to see if it had been 500 feet high and lit up with huge neon signs saying “Huge Housing Bubble.” But Greenspan insisted the bubble was not there.
And Greenspan somehow didn’t recognize that the collapse of this massive bubble would devastate the economy. The bubble was generating over $1 trillion in annual demand through its direct impact on housing construction and its indirect impact on consumption through the housing wealth effect. This demand would inevitably disappear when the bubble burst, leaving a huge hole in demand