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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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what ticks me off about these buyouts is that the useless CEO who gave us the mess and ran the bank into the ground get to leave with golden parachutes while the employees are left with nothing.
When are we going to stop giving welfare to corporations and CEOs while the average person starves and is in trouble.
I am so sick of this republican economy and it's all for the rich.
Talk about elitists!
Posted by: vwcat | Sep 14, 2008 12:09:18 PM
An economic crisis after two Republican administrations? Sounds familiar. Let's see. The Great Depression in 1929 started after two and into the third Republican administration. The recession of early 1990s started after two Reagan administrations and into the third republican administration. Now again. Some record these guys have. However, I would not be surprised if this country votes Republican again. Stubborn and stupid.
Posted by: Alex | Sep 14, 2008 12:09:52 PM
why should we stop giving corporate welfare and not personal welfare? do you realize how many billions we have wasted on that little democratic plan? its the same exact thing, but you "sympathetic" people on the left dont see it everyday, and dont see the money thats wasted on it so its ok. welfare in general is a waste. a complete waste.
Posted by: tim | Sep 14, 2008 12:11:58 PM
JA wrote:
The decline in the economy coincides with the Democrats taking control of Congress.
Boy are you dumb! The economy starting falling apart by the time the democrats got to congress and too late for them to do much. Besides, anything they can do has been filibustered by the elitist republcians.
this is the result of 30 years of failed republican policies and the failed trickle down theory that also caused the Great Depression in the 30s.
Posted by: vwcat | Sep 14, 2008 12:12:10 PM
i would rather vote for another republican than give a vote for socialism anyday. as a matter of fact, i think thats what i will do again.
Posted by: tim | Sep 14, 2008 12:13:33 PM
As a republincan I have to be honest. Plain interview was a disater. I just dont undestand why she was not better prepared. I am starting to belive that really says what ever!!! Take it from a hard core republincan Palin is not fit to me commander in chief. I was supposed to fell more confrtable with her after the interview instead I fet like she is just a an empy suit. Waht really bothers me is the honest factor. I dont think shes been honest. I am sorry I will put America first and that is by not voting for her.
Posted by: Diane R | Sep 14, 2008 12:13:45 PM
I watched the Gibson interview with Palin. She was shrill, rigid, nervous, and clearly out of her depth. How could McCain try and put her a heartbeat away from the Presidency? That's the real question. At least Obama made a rational choice when he picked Biden, whom even Republicans consider an expert on foreign affairs. Yes, I am also a republincan who is not being fooled by this palin hype.
Posted by: Linda Hoffman | Sep 14, 2008 12:16:19 PM
ahhh, have you seen the majority of the bills the democrats have tried to get passed in the last two years?! all of you on the left, have been fooled yet again by your own. the majority of the bills on the big issues , have been completely outrageous, or had just one element in them that was outrageous, therefore not even given a chance to pass. and they did this on purpose!!! they did this for this exact reason. so it made the average "mindless" american believe it was the REUBPLICANS holding up progress. well, im not one of those mindless americans. i realize what they have done in order for your vote and its shameful. to hold up any major progress so they can get votes. its not going to work this time.
Posted by: tim | Sep 14, 2008 12:18:32 PM
diane...
first off, palin is not running for president.. lol secondly, do you actually think barack obama is better prepared than her?! wow....
Posted by: tim | Sep 14, 2008 12:19:55 PM
tim - "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.."
One word: deregulation
Posted by: jock59801 | Sep 14, 2008 12:23:27 PM
tim writes - "i would rather vote for another republican than give a vote for socialism anyday. as a matter of fact, i think thats what i will do again."
Socialism? Is that what you are afraid of? Ok let's see. What do you call no-bid contracts worth billions of taxpayer dollars? A free market? Bear Sterns bail out? Freddie/Fannie bailouts? Prohibition to bargain with pharma companies for best price on medications? Protectionist steel tariffs? Oil companies tax subsidies? Punish seniors for going to Canada to buy cheaper medicine? Who brought us all this nonsense?
Socialism is when government owns all the property and plans all business in the country. I have not heard Dems advocating that.
Fashism is when corporations have government in their pocket. You are gonna vote for some kind of an "ism" in any event. Don't fool yourself.
Posted by: Alex | Sep 14, 2008 12:24:37 PM
There’s something I notice about NObama in every speech he delivers it is heavily covered by the media; “he’s close and yet so far.” He connects with the people for a few minutes like a good lecturer but once a person leaves the lecture room, they can’t remember a damn thing what the lecturer talked about. He also talks down on people, he puts a distance between him and his audience, like a professor to his students. NObama cannot relate to a common man but he expects you to believe whatever he says and you have no right to question him. He made him self into an icon, untouchable in so many ways. But the more people know about him, the less they like him; due to the fact NObama is speaking in another world, he uses a language foreign to a lot of people. It is English but the way he talks, makes you feel inferior, you’re beneath him. That is my summation of NObama.
NO WAY NO HOW NO VOTE NOBAMA
Women are the majority and we REJECT obama!! WE will protest the Undemocratic party this election and N.O.T. Nothing on top of the undemocratic ticket..empty. NOBAMA!!
I WILL VOTE McCAIN/PALIN.
Posted by: HP Boston | Sep 14, 2008 12:25:31 PM
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
---------------------------------
EXACTLY!!
Posted by: HP Boston | Sep 14, 2008 12:27:22 PM
Of course Barack Obama is better prepared than Palin. He has been living with these issues for years. He has an insatiable curiosity. And he is U.S. Senator. I have nothing against Palin, but she obviously does not know the issues or the world as well as Obama. And with Biden being the most knowledgable of the four, they make a pretty good team.
Posted by: jock59801 | Sep 14, 2008 12:28:35 PM
Greenspan is most singularly responsible for our current economic catastrophe. Amongst other disastrous decisions, he encouraged the widespread irresponsible behaviour by the banks and mortgage companies leading to the subprime debacle. The biblical message is that money must never be made available so cheaply. With all of his knowledge and at the end of his career, why didn't Greenspan understand this?
Posted by: ikas | Sep 14, 2008 12:28:59 PM
jock...
ok, this is my point. im a conservative, not a republican. that being said, i am just as disgusted with what the republicans have been as of late. and you're right. thats PART of the problem. but you know what i hate? i hate people who come in here and blame everything on what party or the other. those who actually believe it has been the last 8 years alone that have brought on this crisis. its just not that simple. there are many factors that have brought this on from the changes that were made under the clinton administration that made predatory lending a ton easier, to alan greenspans work in the past decade or so. our government wastes SO MUCH money, the average american ha no clue. and it simply cant be blamed on one party or the other as they would lik us to believe. thats not to say they both dont have their faults, but to come in here and throw the generic "the last 8 years have been a disaster" idea out there is cheap andshows that person isnt looking at the big picture. thats my point.
Posted by: tim | Sep 14, 2008 12:29:16 PM
alex...
you're right, ive been fooled.
Posted by: tim | Sep 14, 2008 12:30:14 PM
HP Boston
Your inferiority complex is hardly a good reason for any of the rest of us to avoid Obama. He makes sense to us.
Posted by: jock59801 | Sep 14, 2008 12:31:24 PM
first off, palin is not running for president.. lol secondly, do you actually think barack obama is better prepared than her?! wow....
Posted by: tim | Sep 14, 2008 12:19:55 PM
-------------------------------
I think Obuma is ill prepared to be GOVENOR OF ALASKA!!
I am so concerned about the money and media baking of Obuma, it is a dam
CRUSADE!!!
Posted by: HP Boston | Sep 14, 2008 12:31:30 PM
Greenspan should know he was part of the rape of America the last 15 years. Nothing well ever " Change " until the States take back the power from Congress.
Posted by: Tomjoad1776 | Sep 14, 2008 12:32:59 PM
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