Greenspan is no fool. He knows that there will be “collateral damages” to the economy from the housing downturn. A few years ago, Greenspan was on the record cheering the housing bubble. If the economy is hit hard, he’ll be blamed.
He’s trying to associate any possible recession with the “end of the business cycle”. Now, to be fair, the business cycle does play a factor. IMO, it’s a small factor. The bursting of the credit bubble (that manifests itself as a housing bubble) is the big factor.
“We are now well into the contraction period and so far we have not had any major, significant spillover effects on the American economy from the contraction in housing,” he said.
“…well into the contraction period…”
Based on WHAT?
“…[no] major, significant spillover effects…”
Right, like Subprime lenders going down daily, housing starts declining, mortgage company layoffs, or sales down at National Hardware retailers. (info from Home Channel News – Lowes down 11.5%, Depot down 28%)
He was a politcal tool as Chairman, he’s a political tool in retirement.
What a dipshit Greenspan is…….Notice he says this from HONG KONG….He's an old fart anyway, he is just sad that his name will be forever associated with the demise of the worlds economy….whether he likes it or not……THAT IS his legacy
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