Paul Krugman (NYT): Three-Card Maestro

[Dudley_DUright]

Alan Greenspan just did it again.

Four years ago, the Fed chairman lent crucial political support to the Bush tax cuts. He didn't specifically endorse the administration's plan, and if you read his testimony carefully, it contained caveats and cautions. But that didn't matter; the headlines trumpeted Mr. Greenspan's support, and legislation whose prospects had previously seemed dubious sailed through Congress.

On Wednesday Mr. Greenspan endorsed Social Security privatization. But there's a difference between 2001 and 2005. In 2001, Mr. Greenspan offered a convoluted, implausible justification for supporting everything the Bush administration wanted. This time, he offered no justification at all.

In 2001, some readers may recall, Mr. Greenspan argued that we needed to cut taxes to prevent the federal government from running excessively large surpluses. Even at the time it seemed obvious from his tortured logic that he was looking for some excuse, any excuse, to help out a Republican administration. His lack of sincerity was confirmed when projected surpluses turned into large deficits, and he nonetheless supported even more tax cuts.

more...

http://www.nytimes.com/2005/02/18/opinion/18krugman.html?hp

[tabasco]

1. Thank you Mr. Krugman ! Greenspan is a criminal !

It is time Democrats start treating Greenspan like the criminal he is.
Once again, Professor Krugman tells it like it is.

[dbeach]

4. Green for money..greedspan is more appropro

who is his spouse???

is it a media whore??

To think woodward wrote book praising him as the "maestro"..more like the consigliore if ya remember the godfather...

[teryang]

2. Greenspan is a disgusting liar

He has the chutzpah to say that privatization of Social Security is a way to reverse the decline in savings in our economy.

The decline is savings is a direct result of cheap money monetization he and his private banking friends have been employing to save their bankrupt system from the inevitable bust that has to take place.

Negative interest rates on savings enforced by the Fed penalize savers. Grow through debt or perish is the Fed's mantra penalizing hard working and budget conscious Americans. Irresponsible borrowing by speculators is rewarded while savers see their financial situation steadily deteriorate through inflation, zero real growth, and the huge sucking sound of outsourcing and out of control immigration of cheap labor.

This fraudulent game isn't going last much longer. Small buyers of real estate and businesses aleady know that prices for homes and small commercial properties are unsupportable. The big developers are still doing the land development thing here. Their properties are going to suffer from high vacancy rates and inadequate takers. The game of musical chairs is almost over.

[liberal43110]

3. Wow!

Calling Greenspan what he has become: a "partisan hack." Gutsy. And so, so true.

[realFedUp]

5. Mr. Greenspan a "partisan hack"

strong language from Krugman and
aptly fits.

Can we get our country back?

[Dudley_DUright]

6. Here is a report on the "Maestro's" testimony that Krugman talking about

Greenspan Backs Idea of Accounts for Retirement

Alan Greenspan, the Federal Reserve chairman, gave his blessing on Wednesday to the creation of individual investment accounts in Social Security but expressed unease that the change could lead to trillions of dollars in additional government borrowing in the next few decades.

Mr. Greenspan's cautiously hedged support for the core of President Bush's plan to overhaul the retirement system came as Mr. Bush, in newspaper interviews published Wednesday, left the door open to raising taxes on upper-income people to help deal with Social Security's projected financial problems.

more...

http://www.nytimes.com/2005/02/17/business/17fed.html?hp&ex=1108702800&en=5cfca4ca5a66eaaf&ei=5094&partner=homepage

[dbeach]

7. jr raisng taxes for power elites..thats about as likely as..

Osama being found ..
Where is waldo??

[necso]

8. The Times was slow on the rollover tonight.

Both Mr Krugman and Mr Herbert have been writing some powerful stuff.

The valor and prowess of (all of) our champions does us honor. They are patriots, every last one of them.

...And they must get a lot of hate mail.

[The Backlash Cometh]

9. You know what I think is the worst thing about listening to Greenspan?

The man has reached his natural lifespan and will soon be dead by natural causes. So why are we relying on the future of this country on a man who has no future?

[Lindacooks]

10. I saw an exchange on CSPAN yesterday that made my blood boil

Greenspan was testifying in front of Congress - and I wish I could remember the name of the man questioning him. The congressman said that we've lost 3 million manufacturing jobs and that good white collar jobs are being exported overseas and asked Greenspan about that.

Greenspan never answered those questions, just kept repeating that the unemployment rate was 'only' 5.4% and that the economy was strong. The congressman then asked if Greenspan thought outsourcing was good for the economy, and Greenspan said the economy was doing well. The congressman then said that he talks to his constituents and the economy is NOT good and jobs are very hard to find. Greenspan then said, condescendingly, that he doesn't 'rely on anecdotal evidence, but looks at the statistics, which show a strong and growing economy.'

If I had watched for one more minute I would have put my foot through the TV screen.

[bleedingheart]

11. Greenspan = Hack

It is what I have been thinking for a while.

[ixion]

12. just another partisan hack.

always has been, always will be.

I blame Greenspan for killing the dot com boom, in large part, because he continued to raise interest rates despite any increase in inflation, until he literally choked the boom to death.

Just my opinion, but I'm no fan of Green$psan.

[dbeach]

13. greedspan hated those new stocks..

cuz hes an ole blue chipper and wallie st goon from a way back..
hack ..stooge ..goon..
"Mastro' of what?? worst economy in history as he guides it the crash..

woodward is a stooge now for even writing that propaganda book
"The Mastro" What a joke..

[idlisambar]

14. Well said Dr. Krugman n/t