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Greenspan to Stephanopoulos: This is 'By Far' the Worst Economic Crisis He's Seen in His Career
September 14, 2008 11:07 AM
ABC News' George Stephanopoulos Reports: Former Federal Reserve Chair Alan Greenspan said this morning that this is "by far" the worst economic crisis he has ever seen. "There's no question that this is in the process of outstripping anything I've seen, and it still is not resolved and it still has a way to go," he said in an exclusive "This Week with George Stephanopoulos" interview.
Greenspan also noted, "let's recognize that this is a once-in-a-half-century, probably once-in-a-century type of event."
Looking ahead, Greenspan changed a previous prediction on whether the economy is headed towards a recession. When asked if the chances of escaping a recession were greater than 50 percent, Greenspan responded "no, I think it is less than 50 percent." But in a "This Week" interview last December, Greenspan predicted "that the probabilities of a recession have moved up close to 50 percent, whether it's above or below is really extraordinarily difficult to tell. I think it's correct.
On the fate of investment bank Lehman Brothers, Greenspan said he did not know enough of the details to comment on whether the government should step in and help. However, when asked if we will see the failure of more financial institutions, Greenspan affirmed "I suspect we will."
"But in and of itself that does not need to be a problem," he explained. "It depends on how it is handled and how the liquidations take place. And indeed we shouldn't try to protect every single institution. The ordinary course of financial change has winners and losers."
September 14, 2008 | Permalink | User Comments (220)
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guess you republicans are lookin for anything to double talk your way out of things by covering up the truth and spreeding lies about Obama putting words in this mouth and basicly doing everything to spear the democrats and then attack us for tryin to fight back!!McCain/Pain havn't said and done anything but put Obama/biden down to make themselves look better which had been used time and time again.
wake up america!! votr for someone who will stand up for the middle class and change what has been happening the last eight years!! McCain/palin aren't going to change anything and haven't even explained their platform and I can't wait for the debats and hope Obama/biden call them on all their cards!!!
Posted by: jenn | Sep 14, 2008 11:19:04 AM
Yeah, notice there are no troll comments on this one. The truth hurts... republican economic policies putting us ALL in danger whether we voted for them or not. Please people, wake up!
Posted by: Leslie | Sep 14, 2008 11:35:59 AM
Yeah, notice there are no troll comments on this one. The truth hurts... republican economic policies putting us ALL in danger whether we voted for them or not. Please people, wake up!
Posted by: Leslie | Sep 14, 2008 11:35:59 AM
Oh jenn, I can't wait for the debates either. Unlike you, tho, I don't hope McCain/Palin will show the other two for who they are. I know they will. Hey Obama needs your change. It's his new campaign slogan.
Posted by: Kitty | Sep 14, 2008 11:37:07 AM
The policies of the Republican Party are broken. We cannot afford to be in Iraq, Afghanistan and Pakistan. And yes,Iran as well as we have Special Ops forces in country assessing Irans capabilities and vulnerabilities. Our economy is ruined, banks are collapsing on a weekly basis, The Treasury has taken over Fannie mae and Freddie Mac and the auto manufacturers are seeking government bailout as well. Many people in the north will not be able to afford to heat their homes this winter due to the high heating fuel costs.Yetthere are people out there who are willing to vote McCain - Palin and continue these disasterous policies. Please open your eyes and support Obama, let's hae a change!
Posted by: Snoop | Sep 14, 2008 11:38:14 AM
Yeah, notice there are no troll comments on this one. The truth hurts... republican economic policies putting us ALL in danger whether we voted for them or not. Please people, wake up!
Posted by: Leslie | Sep 14, 2008 11:38:31 AM
All this shows is that Greenspan left a mess when he retired, and that the Democratic-controlled Congress compounded the problems by doing NOTHING over the past two years.
Posted by: RKH | Sep 14, 2008 11:46:05 AM
Wait a minute. Greenspan says this is the worst economic crisis he has ever seen, probably a once in a century event, but it might not be a recession??
Please explain.
Posted by: jock59801 | Sep 14, 2008 11:50:16 AM
The decline in the economy coincides with the Democrats taking control of Congress.
Think people.
Posted by: JA | Sep 14, 2008 11:52:54 AM
This is why Democrats hold the lowest approval rating in history. Only in placed Republicans run the state such as Florida and Texas is the Economy booming. But in Democrat created cesspools such as Chicago Illinios the place Obama is in charge of is not only the murder capital of the world. Almost 2 out of 3 blacks are unemployed thanks to Obama and his PAY to PLAY politics with REZKO or the Media afraid to report that on Obama the scum bag
Posted by: fartty | Sep 14, 2008 11:54:16 AM
This is not saying much for Greenspan himself since he may of created the mess we are in now for not putting a lease on the economy while he was in office. Now we are in a market correction
Posted by: fartty | Sep 14, 2008 11:56:29 AM
How bad does it have to get before they wake up?
The Republican base is the backwash at the bottom of the glass. They will support any RNC PIG no matter how immoral and deceitful they are.
The RNC policies have WRECKED our economy and yet they are running McCain who will give us 4 more years of the same failed economic policies.
Sarah Palin LIED about visiting the troops in Iraq, a spokesperson for the Republican vice presidential nominee confirmed Saturday.
If Obama did such a thing his campaign would be over.
Palin is an AIP supporter and her husband was an AIP member who would REMOVE A STAR FROM THE US FLAG.
Posted by: John | Sep 14, 2008 11:58:21 AM
George Stephanopoulos get back to reporting the real news instead of opinions of people. What are you a talk show host like Oprah trying to help out your boyfriend Obama
Posted by: dean jan | Sep 14, 2008 11:58:37 AM
The stock market took a plummet the moment it became clear, earlier in the year, that Barack Obama would likely win the Democratic primary. And common knowledge, at that time, was that the Dems were a shoe in for victory.
Posted by: JA | Sep 14, 2008 12:00:15 PM
McCain's financial adviser, former Sen Phil Gramm is a major cause for the problems by deregulating futures trading and financial institutions. Gramm removed the laws put in place to prevent another "Great Depression" Do a search on Gramm and foreclosure, subprime, Enron, speculators
McCain said Gramm is a genius economist and McCain has said he does not understand economics
This is too serious for McCain that loves fighting wars, but will not answer questions about policy
What has McCain accomplished during 26 yrs in Congress?
Posted by: Julie | Sep 14, 2008 12:02:12 PM
And we can thank Greenspan for it! He began the expansion in the first place. And left the recession for "Helicopter Ben" to manage throwing more credit out on the market. What happens when you have easy credit, defaults and predatory lending. The banks get bailed out while the debtors lose everything, nad the taxpayers get the bill. Thnks Greenie! Now take your tv wife, and GO AWAY!!! Your lucky you are not in jail. You just might want to leave the country. No worry, WE will still be stuck here paying for your sin.
Posted by: argh! | Sep 14, 2008 12:03:16 PM
I wish someone would tell me how a minuscule 2-point change in interest rates can be the biggest calamity to befall the United States economic system.
In the past 200 years, interest rates have changed by far more than that in far shorter a time period - yet the financial institutions didn't collapse.
Obviously risk-management was not a specialty of the mortgage community - propping up housing prices that I estimate to be about 500% of what they should be (I mean really, should a 1200 square foot home on a 6000 square foot lot really be "worth" a million dollars in the bay area?).
I say let the whole system collapse and let housing prices fall to where they belong (in the 100K range) and let the banks that lend responsibly survive.
Posted by: Susan DeOrnelias | Sep 14, 2008 12:03:21 PM
George Will said, with a straight face, even, that he would have flunked the Bush Doctrine question. Hey George, your memory fading, or what???
The Bush Doctrine At Risk. By George F. Will Sunday, June 22, 2003; Page B07 Washington Post.
Even McCain surrogates will lie through their teeth and expect us all to believe them.
Posted by: David Hart | Sep 14, 2008 12:03:52 PM
This is the GOP's mythical Reaganomics crashing and burning in spectacular fashion.
The world turned into one rancid speakeasy ruled by chronic gamblers and get-rich-quick schemers, willing to play anyone as a mark under their New World Order.
And McCain promises more of the same.
Posted by: Becca | Sep 14, 2008 12:04:28 PM
ok, just out of curiosit, why do you democrats on here think its the republicans fault for the economic crisis? please explain your thoughts instead of just jumping on the bandwagon..
Posted by: tim | Sep 14, 2008 12:05:34 PM
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