ALLEN GREENSPAN: "The Worst Economic Situation In My Lifetime"

  • HndsmKansan

    Posts: 16311

    Sep 16, 2008 1:19 AM GMT
    In an ABC Interview, Allen Greenspan said that the current economic turmoil is very concerning, remarking that this kind of thing only happens "once or twice a century".

    The noted "non partisan" said the fundamentals.. are not strong......
    Good person to brief us based on his past with the Federal Reserve.
    Monday was a horrible day with the market, I'm surprised I didn't have more clients calling me on the phone. It was the 6th worst day in market history.

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    Sep 16, 2008 1:31 AM GMT
    I'm still processing it all. Both Merrill Lynch ( along with Bof A, and formerly Nations Bank) and AIG were huge clients of mine. I've been on phone and in conference with colleagues all day on this topic. It'll be a long night.
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    Sep 16, 2008 2:09 AM GMT
    My humble opinion is that this problem is running so deep in the financial markets that it may get worse, before starting to turn around. (am I too pessimistic?) I'm with Greenspans opinion also that our country cannot afford McSames further tax cuts he's proposing !!!! Maybe now people will understand that some government regulation is what is needed. If democratic efforts to regulate the banks, and speculators, hand not been stopped by the republicans several years ago, their legislation could have kept us from a good deal of this mess. Even now the repugs are stopping efforts to reign in the speculators cause of the effects they are having on inflating gas prices unnecessarily.
  • SkyMiles

    Posts: 963

    Sep 16, 2008 3:16 AM GMT
    It's pretty safe to say what the endgame was with all that deregulation -- a few at the top get to enjoy the upper reaches of extreme wealth while everybody else in the country gets to lose their house, their job and their retirement portfolios. Thanks republicans! Thanks Phil Gramm and George Bush! Way to run the country. What do y'all do for an encore, gargle glass?
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  • coolarmydude

    Posts: 9190

    Sep 16, 2008 3:50 AM GMT
    Drilling will fix it!


    Drill baby drill!


    Oil makes the world go 'round...
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    Sep 16, 2008 4:00 AM GMT
    coolarmydude saidDrilling will fix it!


    Drill baby drill!


    Oil makes the world go 'round...



    stfu redneck.


    now I agree the markets were terrible. Lehman Bros bankrupt? holy shit.
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    Sep 16, 2008 4:05 AM GMT
    Obviously the solution to this crisis is:



    Drill for more oil.

    Lower taxes.

    Eliminate the capital gains tax.

    Reduce/eliminate regulation.

    Eliminate "waste and fraud"

    "Reform"

    and Restoring "honor and dignity" to the White House.

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    Sep 16, 2008 4:10 AM GMT
    You forgot: Eliminate the "death tax."
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    Sep 16, 2008 5:05 AM GMT
    Who knows? If it keeps getting worse, some of those Wall Street boys might even have to get real jobs...

    I'm imagining putting a crummy-load of 'em to work out in the fields, in their tattered clown-suits and dirty wing-tips. Real Grapes-Of-Wrath stuff. Incidentally setting up a few classic porn scenes...

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    Sep 16, 2008 5:56 AM GMT
    I don't have a mortgage (I don't own a house).

    I have an old 401K that isn't very big, but is just sitting there because I don't know what to do with it. My car loan is fixed, and a line of credit I have with my credit union has a low variable rate that surprisingly hasn't changed much over the 4 years I've had it.

    Outside of the 401k I have no stocks or bonds.
    And I'm already being screwed over by my credit cards, so anything new there won't be a surprise.

    It doesn't really feel like this is going to affect me. It seems like it's going to affect people way above my meager status in our economy.

    Honestly, how does this affect the little people?
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    Sep 16, 2008 6:11 AM GMT
    coolarmydude saidDrilling will fix it!


    Drill baby drill!


    Oil makes the world go 'round...


    ... In 10 years, when the oil would be ready to be used.

    Or, you know, we could invest in some of that crazy green power.
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    Sep 16, 2008 6:24 AM GMT
    skotjockmi saidHonestly, how does this affect the little people?


    In the short term, the fear and doubt dries up credit markets, so rates go up, and it's harder to get the car loan, the home improvement loan, etc. and costs more when you get one. And you'll see the results in your next few 401K statements, for sure. And millions of other people with those same statements will look at their losses and all of a sudden feel much less like springing for that new car or dishwasher.

    The financial sector can drag down the economy, cause everything's connected. Just because you don't have a personal stake in high-end derivatives or even in the stock or bond market, doesn't mean your livelihood isn't connected to people who do. All those folks in the financial sector buy and finance things from other sectors. So if one sector is big enough and takes a big enough hit, we all feel it. It remains to be seen how big an effect this will all have. We haven't seen all the failures yet. Stay tuned!

    But in the long run (one or two years), we'll have forgotten. Our economy is pretty big and diverse and can take some serious punches. As long as you have a multi-year outlook, you can mostly just sit and watch from the sidelines, like a popcorn munching cat.
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    Sep 16, 2008 6:31 AM GMT
    Mr. Greenspan...actually is to blame!!!

    Read up and you will see how it all started....
  • GQjock

    Posts: 11649

    Sep 16, 2008 8:28 AM GMT
    Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown.
    In the 1990s, as chairman of the Senate banking committee, he routinely turned down Securities and Exchange Commission chairman Arthur Levitt's requests for more money to police Wall Street;
    And in 1999, Gramm pushed through a historic banking deregulation bill that decimated Depression-era firewalls between commercial banks, investment banks, insurance companies, and securities firms—setting off a wave of merger mania.
    If that wasn't enough in 2000 Gramm slipped in a 262-page measure called the Commodity Futures Modernization Act. Written with the help of financial industry lobbyists and cosponsored by Senator Richard Lugar (R-Ind.),The act, he declared, would ensure that neither the sec nor the Commodity Futures Trading Commission (cftc) got into the business of regulating newfangled financial products called swaps—and would thus "protect financial institutions from overregulation" and "position our financial services industries to be world leaders into the new century."

    There...... and THIS is the man who's very likely to be in line governing economic policy in a McCain administration
  • coolarmydude

    Posts: 9190

    Sep 16, 2008 11:01 AM GMT
    NEWSLFLASH



    For those who obviously don't know me, my "Drill Baby Drill" comment was pure sarcasm. Read my profile/posts!


    But it's good to see more new people getting involved in the "right way" icon_cool.gif
  • coolarmydude

    Posts: 9190

    Sep 16, 2008 11:19 AM GMT
    skotjockmi said, "I don't have a mortgage (I don't own a house).

    I have an old 401K that isn't very big, but is just sitting there because I don't know what to do with it. My car loan is fixed, and a line of credit I have with my credit union has a low variable rate that surprisingly hasn't changed much over the 4 years I've had it.

    Outside of the 401k I have no stocks or bonds.
    And I'm already being screwed over by my credit cards, so anything new there won't be a surprise.

    It doesn't really feel like this is going to affect me. It seems like it's going to affect people way above my meager status in our economy.

    Honestly, how does this affect the little people?"


    There are two sides to the coin, my friend: Direct and Indirect.

    So directly, you're not affected...fair enough. So let's look at the indirect ways you are affected:

    Food prices increase
    Energy prices increase
    Inflation increases
    Small businesses closing down (shoot, big businesses closing down - unheard of!)
    Increased crime
    Smaller city budgets
    fragile education system hurts even worse
    insurance premiums rise
    weakened dollar
    it's a downward spiral of "foolishness and mayehm"; and the big kicker is that each one of these and other problems affect each other in some way. It's a tangled web that is so thick that fixing it will hurt just as bad. Example: a weakened dollar spurs inflation and inflation increases prices and at the same time, salaries stagnate or decrease...it's a scenario of a cat chasing its own tail.
    I'm sure there's more to be concerned for and I'll leave that to others to post.

    Here's a question for you. If you were to face some kind of emergency, especially medical, are you in a position to financially survive that emergency?

    No one is safe when the society at large suffers by the greed of a few.

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    Sep 16, 2008 12:04 PM GMT
    It will likely continue to get worse because the new financial instruments that investment banks and banks were using (e.g. collarterised debt obligations) can take months to unravel.

    The thing I find tragically ironic about the whole mess is that for years Wall Street has been demanding little regulation or oversight claiming they can regulate themselves and that government should get out of the way. As soon as they start going belly up they start phoning the government asking for assistance. Corporate welfare at its' worse.
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    Sep 17, 2008 4:21 AM GMT
    coolarmydude said

    Here's a question for you. If you were to face some kind of emergency, especially medical, are you in a position to financially survive that emergency?

    No one is safe when the society at large suffers by the greed of a few.



    Nope.

    It would be bankrupcy, move in with my parents and hope to pull out of it and struggle back to financial independence eventually. I honestly don't understand how anyone can be able to be that prepared for something like that... it's just beyond my grasp.

    I was looking for political quotes the other day for another thread and found that Thomas Jefferson said many many things about the banking industry leading to the destruction of the republic. Interesting.


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    Sep 17, 2008 4:47 AM GMT
    LOL... didn't Thomas Jefferson die bankrupt?
  • coolarmydude

    Posts: 9190

    Sep 19, 2008 8:05 PM GMT
    skotjockmi said, "Nope.

    It would be bankrupcy, move in with my parents and hope to pull out of it and struggle back to financial independence eventually. I honestly don't understand how anyone can be able to be that prepared for something like that... it's just beyond my grasp.

    I was looking for political quotes the other day for another thread and found that Thomas Jefferson said many many things about the banking industry leading to the destruction of the republic. Interesting."




    Oh....so this is how you see things:

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