Greenspan Warns of Risks From U.S. Debt
By JEFFREY SPARSHOTT
WSJ
WASHINGTON—Former Fed Chairman Alan Greenspan said the U.S. could face a bond-market crisis if politicians don't act soon to start cutting the nation's debt.
In an interview with Kelly Evans, Alan Greenspan discusses the dangers of current fiscal policy while challening his critics to prove him wrong on any decision he made as Fed Chairman.
In an interview Friday with The Wall Street Journal, Mr. Greenspan said that eventually Congress would pass a budget that includes many proposals by a White House debt-reduction panel.
"I think that the type of budget agreement that was put together by Alan Simpson and Erskine Bowles is the type of budget that will be passed by Congress," Mr. Greenspan said. "The only question is, will it be before or after the bond-market crisis."
The former head of the U.S. Federal Reserve was referring to the co-chairmen of the National Commission on Fiscal Responsibility and Reform, who last month won limited support for a sweeping overhaul of U.S. tax and spending policies that would cut $4 trillion in debt.
(More here.)
WSJ
WASHINGTON—Former Fed Chairman Alan Greenspan said the U.S. could face a bond-market crisis if politicians don't act soon to start cutting the nation's debt.
In an interview with Kelly Evans, Alan Greenspan discusses the dangers of current fiscal policy while challening his critics to prove him wrong on any decision he made as Fed Chairman.
In an interview Friday with The Wall Street Journal, Mr. Greenspan said that eventually Congress would pass a budget that includes many proposals by a White House debt-reduction panel.
"I think that the type of budget agreement that was put together by Alan Simpson and Erskine Bowles is the type of budget that will be passed by Congress," Mr. Greenspan said. "The only question is, will it be before or after the bond-market crisis."
The former head of the U.S. Federal Reserve was referring to the co-chairmen of the National Commission on Fiscal Responsibility and Reform, who last month won limited support for a sweeping overhaul of U.S. tax and spending policies that would cut $4 trillion in debt.
(More here.)
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1 Comments:
Mr Greenspan, please read 'Professor' Krugman. He says we have nothing to fear from piling on more debt and more spending. Mr Greenspan, you are sorely mistaken. In fact, the recipe, according to the good 'Professor', is even more debt and more spending!!
So, let's just open the spigots, baby, and ramp up that debt to 200%, 300%, 500%, 1000% of GDP. We have nothing to fear from our debt load, nothing at all to fear whatsoever.
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