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Shocking Admission & Denial from Alan Greenspan

  • Government released revised estimate for Q4 GDP
  • Initial estimate was 2.6; revised down to 2.2
  • Economic growth dipped from 5% in Q3 to 2.18% in Q4
  • PMI was expecting 58.7 but plunged to 45.8, indicating contraction
  • Alan Greenspan commented that the U.S. economy is weak
  • Greenspan cites declining U.S. productivity
  • Points to declining gross domestic savings brought on by entitlement programs
  • Greenspan refuses to blame Fed policy for productivity and savings declines
  • He predicts continued low interests rates to create the illusion of wealth
  • In 1966, Alan Greenspan blamed the Fed and their cheap money policies for stock market bubble and economic imbalances
  • Today, he still believes this to be true, but no longer cares about the consequences of reckless economic policy
  • The Fed’s job now is to just do whatever it takes to postpone the pain
  • Inflating bubbles with the certain knowledge that the outcome will be bad, while pretending that they will eventually raise rates