Greenspan Predicts 3% Economic Growth

Monday, October 05, 2009

The U.S. economy will grow more than expected in the third quarter, but unemployment is "going to penetrate the 10 percent barrier before heading down," former Federal Reserve Chairman Alan Greenspan said Sunday. "We are in a recovery, and I think it would be a mistake to say the September numbers alter that significantly," he said.

Posted by jackass at 02:30 PM | 39 COMMENTS | permalink | Comment on This Entry

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jackass

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Glad to see some good news is on the horizon and I also appreciate the bipartisan effort to help those in need. Maybe by the midterm elections things will have rebounded enough we can finally put the nail into the coffin of the republican party.

#1 | Posted by jackass at 2009-10-05 04:54 AM | Reply | Flag:

Not with 10% unemployment and a weakling leading this country, you're not. Jackass.

#2 | Posted by cookfish at 2009-10-05 05:39 AM | Reply | Flag:

Weakling? I'd take Obama over Bush in a fistfight. Unemployment will be under 10% by the end of next summer.

#3 | Posted by jackass at 2009-10-05 05:44 AM | Reply | Flag:

And of course no one on the left believes him. He was reviled as the one who made money too easy and responsible for the real estate implosion.

#4 | Posted by goatman at 2009-10-05 07:48 AM | Reply | Flag:

Helped engineer 40 years of economic bubbles. Helped lay the foundations of a debt based society.

One of the most prolific cons in the game.
Should be sitting in a federal pen.

It aint over, boys and girls.

Not even close.

#5 | Posted by gitmboy at 2009-10-05 08:36 AM | Reply | Flag:

Alan Greenspan?

I'd say he's lost all credibility to make any predictions.

#6 | Posted by Hagbard_Celine at 2009-10-05 08:46 AM | Reply | Flag:

See...he's right now. Just like "most economists".

...and right as the Fed audit is on the horizon.

#7 | Posted by IraqiBukkake at 2009-10-05 11:09 AM | Reply | Flag:

Didn't the 3rd quarter end this week? How is that a prediction then?

#8 | Posted by mysterytoy at 2009-10-05 11:12 AM | Reply | Flag:

Greenspan has as much credibility as a retired general.

#9 | Posted by mysterytoy at 2009-10-05 11:12 AM | Reply | Flag:

Because of the way GDP is calculated, 3% is easily achievable. Just the restocking of inventories contributes to GDP, even if they're not sold. So if Toys R Us buys $5 billion worth of toys that don't sell, GDP goes up, pending a readjustment in future quarters.

It's another way that the computation itself doesn't lend itself to necessarily being able to gauge the nation's true economic health.

#10 | Posted by rightisright at 2009-10-05 11:40 AM | Reply | Flag:

There's still a $1.6 trillion dollar deficit lingering. Hope everyone is prepared for interest rates circa the 1980s.

#11 | Posted by taxman at 2009-10-05 01:11 PM | Reply | Flag:

Greenspan is a fucking Liar

Bank lending is off 14 per cent since October 2008. Private credit is presently decreasing at a 10.5 per cent annual rate.

Foreclosure activity is currently at 300,000-plus per month and rising. A huge shadow inventory is being kept off-market to maintain prices. The drip, drip, drip-effect of excess inventory dumped onto the market will keep housing in the doldrums for a decade. Homeowners are unable to borrow on underwater homes. Everything points to a long-term slump in spending.

Corporations are finding it harder to roll over their debt, bank loans are defaulting at a historic pace, and commercial real estate is imploding. Credit destruction is unprecedented, massive and ongoing. The capital hole is bigger than the Fed and bigger than the Treasury.

Households have lost nearly $14 trillion in wealth since the crisis began and are in no position to resume borrowing at pre-crisis levels. The real economy is still flatlining while Wall Street parties on. The party is criminal with Government participation. HUD has subcontracted its foreclosures to recipients of the TARP funds. One such venture, Liquidation Properties, Inc. (LPI) is a subsidiary of Citigroup. But it takes expert sleuthing to ferret this truth out because HUD has such complete contempt for the American people they refuse to identify bidders or the winning bids in what could easily be rigged bids, as millions of families, including retired elderly and children are thrown into the streets by the very investment banks which created this scam which they are poised to flip yet again.

The trillions of dollars in loans, complex debt-instruments, off-balance sheet operations and derivatives contracts were all stacked atop a tiny bit of capital which collapsed under its own weight. Yet Bernanke, Geithner and Summers remain determined to preserve securitization at any and all taxpayer cost.

Excerpted from Martens & Whitney @ Counterpunch

#12 | Posted by nutcase at 2009-10-05 02:59 PM | Reply | Flag:

Because of the way GDP is calculated, 3% is easily achievable.

It also includes government spending and borrowing.
A $2 trillion deficit against a $14 trillion economy hides the drop in GDP.

#13 | Posted by Ray at 2009-10-05 03:13 PM | Reply | Flag:

I think Greenspan has a lot of nerve making any predictions, public speeches or even showing his face. Were he Chinese he would have long since been executed. Were he Japanese he would be disgraced and expected to commit suicide. We Americans are far too forgiving with people like him who have destroyed millions of lives, are responsible more thousands of early deaths, thousands of homeless people and great suffering for millions.

#14 | Posted by danni at 2009-10-05 03:18 PM | Reply | Flag:

True.

I wouldn't worry about Taxman's soaring interest rates, though. Not for awhile. Bond yields are crashing, because the credit system is contracting so rapidly. Even with Obama's profligacy, he can't borrow and spend fast enough to replace the collapse in the real economy.

#15 | Posted by rightisright at 2009-10-05 03:26 PM | Reply | Flag:

The same group of idiots that denied we were in a recession will now wrongly claim that we aren't coming out of it.

It is because they don't understand economic cycles and look at the wrong indicators going into and out of slow downs.

Not with 10% unemployment and a weakling leading this country, you're not. Jackass.

#2 | Posted by cookfish

See? There goes one of them right now.

#16 | Posted by Manypaths at 2009-10-05 03:27 PM | Reply | Flag:

#12

I'm really getting tired of having to flag nutcase as newsworthy.

#17 | Posted by Hagbard_Celine at 2009-10-05 03:29 PM | Reply | Flag:

"I'm really getting tired of having to flag nutcase as newsworthy."

Yeah, and if he would just learn how to link...

#18 | Posted by nullifidian at 2009-10-05 03:35 PM | Reply | Flag:

#1x
At least he tells you were it came from.

Counterpunch.

#19 | Posted by Hagbard_Celine at 2009-10-05 03:42 PM | Reply | Flag:

We Americans are far too forgiving with people like him who have destroyed millions of lives, are responsible more thousands of early deaths, thousands of homeless people and great suffering for millions.

Sooo...that means you're back on board for the Fed audit, Danni?

#20 | Posted by IraqiBukkake at 2009-10-05 03:44 PM | Reply | Flag:

Yes I know it comes from Counterpunch. I'm just too lazy to go to that website and look for it.

#21 | Posted by nullifidian at 2009-10-05 03:46 PM | Reply | Flag:

Yep, let's line up to take the advice of that toad who missed the housing and credit crises coming because of his policies....

#22 | Posted by jonryker at 2009-10-05 03:49 PM | Reply | Flag:

It ain't just me worried about interest rates:

Allen Sloan: Well if this doesn't stop -- and I don't think it will -- we're going to discover that the rest of the world is going to want higher interest rates to lend money to the United States than it now is demanding. And a lot of this money that we're paying in interest basically leaves the country as opposed to, say, World War II -- where the deficits as a percent of the economy were much bigger, but we financed them pretty much inside the country so the interest payments that the government was making stayed inside the country and the money was recycled. And now it's going to leave. And that is not a good thing.

#23 | Posted by taxman at 2009-10-05 04:12 PM | Reply | Flag:

Yep, let's line up to take the advice of that toad who missed the housing and credit crises coming because of his policies....

"missed it"...

Yeah...Right.

#24 | Posted by Axiom at 2009-10-05 04:21 PM | Reply | Flag:

Greenspan has 3% chance of being right.

#25 | Posted by MSgt at 2009-10-05 05:00 PM | Reply | Flag:

don't even get me started. $^%^&%%@!@#%$^ Greenspan.

#26 | Posted by jukeboxalive at 2009-10-05 05:06 PM | Reply | Flag:

"Sooo...that means you're back on board for the Fed audit, Danni?"

No, can't say as I am. The Fed is supposed to be independent, allowing the audit will make it subservient to Congress and politicize decisions about interest rates. I don't doubt that we need to reign in some of the Fed's power and you should know that there are already and always have been regular fiscal audits of the Fed, just not the way they make their decisions regarding interest rates.
Some would even compare it to "auditing the deliberations of the Supreme Court" though I wouldn't go quite that far but still the Fed was supposed to be an independent body not an arm of Congress or the Executive branch either.

#27 | Posted by danni at 2009-10-05 05:20 PM | Reply | Flag:

Danni,

The Supreme Court has checks by design....so should the Fed, if it continues to exist at all...I'd say an institution which, in the 90-some years of its existance, has diluted the value of the dollar to 4 % of its pre-fed value is probably not an institution which should be protected....

#28 | Posted by jonryker at 2009-10-05 05:57 PM | Reply | Flag:

Yes I know it comes from Counterpunch. I'm just too lazy to go to that website and look for it.
#21 | Posted by nullifidian

Thought it was your homepage.

#29 | Posted by AndreaMackris at 2009-10-05 05:59 PM | Reply | Flag:

Wasn't Greenspan surprised at the economic meltdown? Who would believe that stupid fuck about anything?

#30 | Posted by fwthom at 2009-10-05 06:07 PM | Reply | Flag:

Greenspan has a 3% chance of waking up in a dry bed.

#31 | Posted by wisgod at 2009-10-05 06:13 PM | Reply | Flag:

Until the Federal Reserve comes clean about where all the TARP money went, they are the least likely to issue a believable report on anything. I take anything positive that Greenspan says as a sign that we are all gonna get fucked again, but this time, he is going to bail. When he does, you will know it's time to bend over and kiss your ass goodbye.

#32 | Posted by RingMaster at 2009-10-05 07:26 PM | Reply | Flag:

Wait till they quit buying oil with the US dollar. Gonna suck!

#33 | Posted by Unclesam at 2009-10-05 09:06 PM | Reply | Flag:

What they don't want you to know is most of the TARP funds were used to prevent the bankruptcy of Goldman-Sachs & Morgan-Stanley which would have followed years of successful civil lawsuits brought by their customers, China, Japan, the Saudis, France, Germany....probably even the Mormon Church. They took your money in order to save organized crime.

#34 | Posted by nutcase at 2009-10-05 10:27 PM | Reply | Flag:

The American Government is organized crime. Greenspan is serving the role of propagandist, so he and his buddies can steal more money from you. Hey, do you think Greenspan would hire me?

#35 | Posted by mictian101 at 2009-10-06 05:27 AM | Reply | Flag:

Greenspan Predicts 3% Economic Growth

Isn't this the fraud who got us into this mess with his championing of default credit swaps. Whatever he predicts, expect the opposite...

#36 | Posted by Newyawker at 2009-10-06 11:59 AM | Reply | Flag:

Greenspan Predicts 3% Economic Growth

Isn't this the fraud who got us into this mess with his championing of default credit swaps. Whatever he predicts, expect the opposite...

#37 | Posted by Newyawker at 2009-10-06 11:59 AM | Reply | Flag:

I predict Greespan has some kind of weird growth on his brain... about 3% tumor. It is amazing that anyone listens to him at all. But, then again, they listened to Bush didn't they?

#38 | Posted by donnerboy at 2009-10-06 12:38 PM | Reply | Flag:

I predict Greenspan fails to find his ass with either hand....

#39 | Posted by jonryker at 2009-10-06 01:10 PM | Reply | Flag: