Greenspan Interview - CNBC

L

Landis82

Likes the fact that inventory/sales ratios continues to trend down.

Inventory controls are quite good, and are the major reason why the Economy is still holding up. ( check Q2 inventory data in today's GDP report ).

That having been said, he said that we are highly dependent on overseas Economies, and they are obviously weakening and that of course is a concern.

One gets the feeling that he leans towards a "recession" given the continued weakness in the housing market. But he does highlight the fact that the lean inventories are helping the economy.

Interview continues . . .
 
Says that Fannie and Freddie need to be "nationalized" and reorganized into 5-10 different entities.

He says that he has been advocating for this for years . . . and says that you cannot have a 1/2 private and 1/2 public entity. It doesn't work. It's not capitalism.

Need a Resolution Trust type organization to be a "regulator" and not have the FED getting involved in this.
 
Quote from Landis82:

". . and says, you cannot have a 1/2 private and 1/2 public entity. It doesn't work. It's not capitalism.
More...

Does he mean CAPITALISM or the "privatize gains, socialize losses Economic Facism" America has today?
 
#1 challenge for US is to stabilize the financial structure. ie.) Housing.

Says that we will come out of the financial crisis, but we will be challenged to confront the commodity pricing/inflation issues that bottomed back in mid-2007.

50/50 chance of a recession, AG says.
 
Quote from gnome:

Does he mean CAPITALISM or the "privatize gains, socialize losses Economic Facism" America has today?
More...

Cannot have a "half-and-half" entity because the profits go to the company while the taxpaying public is saddled with the losses. That's not Capitalism, and that is why Fannie and Freddie need to be reorganized.

That is what he said.
 
Quote from Landis82:

#1 challenge for US is to stabilize the financial structure. ie.) Housing.
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Likely only way for that is hyper-inflation. Maybe better to let things wash out so that value can be restored for later build.. ??
 
Quote from gnome:

Likely only way for that is hyper-inflation. Maybe better to let things wash out so that value can be restored for later build.. ??
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I would guess that he feels that there is far too much RISK allowing things to go down the tubes and "washout" as you suggest.

Remember, banks are the ones that create capital for investment and growth in the Economy. Without them, you essentially kill the economy because there is no where else to draw the capital from.

We are not a nation of savers, remember?
Never have been.
Never will.

Thus, the capital formation will never come from the public. It has to come from the banking system.

A lot of people here on ET keep missing this key ingredient, in my opinion.

They act as if CAPITAL FORMATION to grow the economy, jobs, etc., will simply occur out of thin air.

:)
 
Quote from RhinoGG:

are you giving us the pay by play action?
Color commentator you are not.
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Never said I was.
Feel free to add some "value".
Are you capable of that?
 
I find it amusing that libertarians want to create a 'washout' to 'clean up' the system against the will of the very people they choosen to help in order to create the 'ideal system'. and we are not talking about a little bit of pain to help an ignorant fools, we are talking about a depression, seems pretty authoritarian to me
 
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