Alan Greenspan Quotes
It turns out that we were all wrong
In 2001, the nation had a huge budget surplus from the Clinton administration and there was much political debate over economic policy. President Bush wanted to have a very large tax cut. Greenspan had testified that given the very large surplus, the nation could afford a tax cut and not resume a deficit. However, the tax cut did not have the stimulus effect that the President had hoped, and the surplus was used up and exceeded. To make matters worse, September 11 began the War on Terror which required extensive additional government spending. The nation went from the largest surplus in American history to the largest deficit in American History in the next 4 years. Greenspan did something that is very rare in Washington. He publicly admitted error.
Alan Greenspan, Chairman, Federal Reserve Board, Testimony, Congressional Hearing, 2005, Quoted in Time, March 24, 2005
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He was the leader of the team that followed to invading troops into Iraq to find the nuclear and other WMDs that the CIA had said were deployed and ready to be used. They found none. Worse for the CIA, there were not even any development programs ongoing. The CIA Director was furious with Kay for admitting the CIA gross error. Kay was given minor assignments thereafter even though he was the best WMD analyst we had.
Greenspan, and his huge staff of economists all completely missed predicting the Meltdown of 2008. They had the power to regulate many of the banks and other companies that got into trouble in the Great Recession. However, all the financiers and economists of the banks of America with their staffs, not only missed the predictions but recommended the disastrous course of activity that almost destroyed the nation’s economy. Only a handful of economists predicted the Meltdown. Those few were not connected with any of the banks or any of the government bank regulators which had become so much like each other as the result of the revolving door, that there was little difference in their thinking.
The United States along with France, Britain and other Western nations maintained an arms embargo against both sides of the Spanish Civil War. However, Italy and Germany, not only shipped arms to the Nationalists but sent planes and crews to fight against the Republicans. Bowers warned that the freely elected Republican government would not be able to hold out against the Fascist attacks of two outside countries and the nationalists in Spain. Further that the arms embargo would force the Republicans politically into the hands of the Russians who became the only possible sourced of arms. The American right wing was opposed to involvement in such foreign disputes. After the Fascists took over Spain, the lesson was not lost on Roosevelt in terms of arms to Great Britain when WWII broke out.
Alan Greenspan is an American economist who served five terms as the 13th Chair of the Federal Reserve of the United States from 1987 to 2006. He works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position (behind William McChesney Martin).
