Speculation Rises About Greenspan's Future

[machinehead]

"[Private economists] wondered if Greenspan's blunt words [criticizing Bush's tax plan] were a sign of a man no longer worried about his future."

 

"It appears as though Greenspan either does not want to be reappointed as Fed chairman next year or has learned that he will not be reappointed," said Paul Kasriel, chief economist at Northern Trust Co. in Chicago.

 

Over and Out

[FeedFool]

$5.6 trillion surplus????

 

 

 

 

 

 

Greenspan came out in favor of a big tax cut that year and gave a major push to the new president. Greenspan reasoned that the 10-year projected surplus of $5.6 trillion gave Congress plenty of room to cut taxes and still accomplish his preferred goal:to reduce the national debt.

[Guest]

Greenspan is by far the best TA guy the Fed has. At least he makes the shorts nervous. He always manages throw in the timely repo. Put another Fed chairman in there and trading the market will be easier from the short side.

[machinehead]

FeedFool, you are to be commended for your sharp eye.

 

Evidently the "$5.6 trillion surplus" is the one that was being projected in early 2001, before the recession. I don't remember it being that big, but it was universally accepted as fact at the time. Both political parties and numerous pundits conducted scholarly debates over "what to do with the surplus."

 

What can you say? In 1939, Orson Welles convinced radio listeners that Martians had landed near Philadelphia and were threatening South Jersey. In 2001, their grandchildren became convinced that there was going to be a giant budget surplus. Wacko, eh?

[SusanJBear]

$5.6 trillion surplus is amusing, isn't it?

 

I have not found any significant examples of any government in this country, Federal, State or local level, that is acknowledging the economic problems we face and builds the implications into their budget projections.

 

Just about every budget projection assumes the economy will turn on a dime and instantly rebound.

 

What IS it about humans who think that if they deny the problem exists, it will go away??!!??

 

When we reached the point that the nation despaired of "nothing but deficits as far as the eye can see", that was a good sign of a boom ahead.

 

Just a few short years ago, it was "nothing but surpluses as far as the eye can see". Duhhh...

 

That is why we are still in for a rough ride ahead. The economic downturn has BEARly (pun intended) been acknowledged in high quarters.

 

The signs of rot and decay are coming from beneath and working their way up and will take those in high places by surprise, like the alligator that leaps out of a sewer and grabs the unsuspecting yuppie walking by at the ankle.

 

What did Yobob say, first a trickle, then a stream...