Greenspan Says Another Dip In Home Prices Will Lead To Further Recession
Wow, I can’t believe the blunt truth that’s been coming out of former financial czars the last couple of days. First former Treasury Secretary Henry Paulson, practically the poster child for the original financial bailouts, comes out and says Fannie & Freddie need to be dissolved and the government needs to stop subsidizing housing (which I may add was all said here on this blog in the last month or so), and now Allan Greenspan, former head of the Federal Reserve comes out and says the following in an interview with Bloomberg:
“Our problem basically is that we have a very distorted economy,” Greenspan said. Any recovery has mostly been limited to large banks, large businesses and “high-income individuals who have just had $800 billion added to their 401(k)s, and are spending it and are carrying what consumption there is.”
I’m slightly shocked here… Greenspan, who’s probably more to blame for the housing bubble than anyone else, is probably the last person I would have expected to come out and talk about the “recovery” only helping the super rich and huge financial institutions.
Pingback: Tweets that mention Our Recovery Is Having A Timeout -- Topsy.com