WH Needs Greenspan to sign on to their SS restructuring scheme

[REACTIVATED IN CT]

<snip>
WASHINGTON — Among the targets of President Bush's campaign to promote Social Security restructuring is a potentially critical constituency of one: Federal Reserve Chairman Alan Greenspan.

White House officials have met with Greenspan in recent weeks to discuss their restructuring initiative. Some advisors say his seal of approval would reassure lawmakers concerned about the borrowing needed to finance Bush's plan to let younger workers create personal investment accounts.

"The White House feels it is imperative that whatever plan they come out with has Alan Greenspan's endorsement," said one prominent Republican who is close to the current policy debate. "They're nervous that Wall Street will rebel against the proposal unless they have Greenspan's blessing."

Some lawmakers hope that Greenspan will tip his hand when he testifies before the Senate Banking, Housing and Urban Affairs Committee on Wednesday and the House Financial Services Committee on Thursday. Although the official purpose of his appearance before each committee is to discuss monetary policy, several members have said they intend to question him about Social Security. <snip>


http://www.latimes.com/news/printedition/asection/la-na-greenspan15feb15,1,1980233.story?coll=la-news-a_section&ctrack=1&cset=true

[flyingfysh]

1. Greenspan will probably sign on to it

In the recent book about Paul O'Neill ("The Price of Loyalty", by Suskind), there is described much discussion between O'Neill and Greenspan about how to make this SS scheme work.