Badmovies.org Forum

Greenspan: No McCain tax cuts without reduction  

WASHINGTON - Alan Greenspan says the country can't afford tax cuts of the magnitude proposed by Republican presidential contender John McCain — at least not without a corresponding reduction in government spending.
 
"Unless we cut spending, no," the former Federal Reserve chairman said Friday when asked about McCain's proposed tax cuts, pegged in some estimates at $3.3 trillion.

"I'm not in favor of financing tax cuts with borrowed money," Greenspan said during an interview with Bloomberg Television. "I always have tied tax cuts to spending..." 

http://news.yahoo.com/s/ap/20080913/ap_on_el_pr/mccain (http://news.yahoo.com/s/ap/20080913/ap_on_el_pr/mccain)

And we should listen to him, why?

http://www.newsweek.com/id/159346 (http://www.newsweek.com/id/159346)

"This mess is mostly a titanic failure of regulation. And the largest share of blame goes back to one man: Alan Greenspan. People mainly fault the former Fed chief, who once enjoyed a near-saintly reputation because of his reputed "feel" for market conditions, for ushering in an era of easy credit that accelerated the mortgage mania. But the much bigger problem was Greenspan's Ayn Randian passion for regulatory minimalism. Under the Home Ownership and Equity Protection Act enacted by Congress in 1994."

Well, duh.

Way to go.  What everyone how has EVER tried to live on a budget already knows..you have to control SPENDING to come within budget.

As I think about statements like this...or rather that someone in gov't thinks they need to be made...I wonder what would happen if the only people allowed to be in powerful offices were people who have BEEN poor, but pulled themselves out of poverty.

Or perhaps run a successful business.  It would be interesting, and mighty instructive, to go back an listen to Ross Perot's '92 campaign comments and commercials right about now.  A lot of what he said is turning out to be awfully prophetic.

Don't you just love it when some politician want to point out the obvious and act they're a great leader a great seer.

I think it's a stretch to suggest GREENSPAN is any kind of politician.  I also agree he is culpable in the housing bubble. 
I think GREENSPAN worked his way up, but I don't know him.  I thought his statement was interesting... if not obvious.  GREENSPAN had been a big supporter of GEORGE W. BUSH.  He retired from the Federal Reserve in 2006 and runs a private firm now.