Question by Steelers R: Is Alan Greenspan the cause of the economic disaster?

Best answer:

Answer by sklinkaware
His actions are a major contributor to it. By keeping interest rates artificially low since the mid eighties the ‘cost’ of borrowing money was so cheap it encouraged speculative risk taking in both real estate and in the markets. This contributed to artificial economic growth by not allowing market forces to set the interest rates and normal economic growth patterns. Therefore a lot of the economic growth through out the nineties was no true growth. When interest rates were slowly moved to more nominal levels by his successor, the fallacies of that false growth have become apparent. This couple with the poor policies by the government since the early nineties have proved disastrous. The elimination of the Glass-Steagall Act, which for decades had separated commercial and investment banking, and signing of the Commodity Futures Modernization Act – which exempted all derivatives, including the now-notorious credit-default swaps, from federal regulation by Clinton were major contributors. His administration also loosened housing rules, which added pressure on banks to lend in low-income neighborhoods. Failures of congress and the last administration through out this decade to add proper regulations after being warned time after time that Fannie Mae and Freddie Mac were in danger among other issues also contributed.

What do you think? Answer below!

by The Aspen Institute

Question by Bob Sacamano: OMG!! Who would have guessed, that according to Alan Greenspan, the war was for oil?
I sort of remember having a bumper sticker that said “No War for Oil”, but all you war supporters said it was to protect our freedoms and that the muslim hourdes were banging at your doorsteps.

Republican denial is like a mental disease.

Best answer:

Answer by Tom
Too bad Greenspan never attended military meetings. His “opinion” is pure speculation…and he’s entitled to it.

Know better? Leave your own answer in the comments!

by leetlegreenman

Question by genntri: Do you agree with Alan Greenspan on War?
“I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil,” he says.

Best answer:

Answer by ruth
I think we already knew the Iraqis were fighting over control of their oil. It is their saleable commodity and source of wealth. This is not news.

What is news is the spin this Greenspan declaration is receiving.

Give your answer to this question below!

by The Aspen Institute

Question by Laura S: What role did Alan Greenspan play in helping recession of 2001?
Working on a paper of the New Economy and what happened in 2001 and need some help with the question “How important had Alan Greenspan been” I don’t know if that means growing the economy before the burst or helping with the recovery afterwards so I’ll answer both, but having trouble finding info about Greenspan and after. All helps and leads greatly appreciated.

Best answer:

Answer by Nic W
I believe he lowered the ‘National interest rate’ (Sorry forgot the correct term)

This made it much easier for people/business’ to get loans, this also helped many people refinance/sell their house at much higher rates because of the influx of ‘buyers’ on the housing market.

Here’s the wiki article if you want more exact information:

Give your answer to this question below!

Prominent Economists Call U.S. Borrowing Unsustainable

Sausalito, CA (PRWEB) January 20, 2006

In a just released documentary film, TIME-BOMB: America’s Debt Crises, Causes Consequences and Solutions, several prominent economists from Harvard and other universities have taken issue with President Bush and his top economic advisors, and have called the current level of borrowing by the U. S. Treasury, “unsustainable and destabilizing.” Harvard Economics Professor and former Chief Economist at the International Monetary Fund, Kenneth Rogoff says bluntly in a new documentary film, “It can’t go on. Sooner or later foreigners are going to lose confidence in the U.S. economy. And when the situation reverses itself, it may be quite traumatic.” The just released documentary film: TIME-BOMB is available for sale in DVD format, online at: http://www.customflix.com/208246.

Rogoff’s statements, were an echo of a recent warning by outgoing Federal Reserve Chairman, Alan Greenspan who testified before the Senate Banking Committee, “Unless the pernicious drift toward fiscal instability in the United States is not arrested, the adjustment process will be painful for the world economy.”

Business Week, in an article entitled, “The Struggle To Sell The Economy’s Sizzle” in its January 23, 2006 issue , reported that Bush’s top economic advisors have “gone into public relations overdrive to talk up good economic news.” and cited a recent speech by President Bush before the Economic Club of Chicago in which Bush underscored positive growth numbers. But the documentary film, TIME-BOMB and it’s Website: (http://www.time-bomb.org/) paint a much different picture of the U.S. economy than what Bush and his advisors are trying to sell. In the film, Professor Rogoff of Harvard explains the dangers of America’s heaving borrowing, “I don’t think its a natural state of affairs for the richest country in the world to be borrowing from the poorest countries. And I don’t think it’s going to be so smooth. I think we’re going to reach a point where the rest of the world decides that they don’t want to lend to us. And it’s kind of traumatic. I think the right way to think about it is that the U. S. deficits are making the whole world vulnerable. When we get sick, everybody is going to get sick, if this unwinds in a difficult way.”

TIME-BOMB is a powerful new documentary that puts the spotlight on America’s exploding national debt and the fact that our leaders are risking our economic future through shortsighted fiscal policies. With each passing day that we do nothing to address our twin deficits, we increase the chances that we will soon be facing an economic crisis of major proportions. TIME-BOMB shows why the hard-earned assets of all Americans are at risk and, on a more profound, level shows why Democracy itself is threatened.

TIME-BOMB is a remarkable film not only because it offers a penetrating analysis of perhaps the most dangerous threat facing America, but also because it does it in a thoroughly engrossing and entertaining manner. TIME-BOMB is a truly powerful film.

TIME-BOMB exposes George W. Bush’s faith-based, supply side economics for what it is: nothing more than pie-in-the-sky wishful thinking. It shows how George Bush squandered a $ 5 trillion government surplus and now runs record deficits in one of the greatest blunders in human history. It’s a story told with both humor and conviction. While George Bush has framed America’s future in terms of the possible threats of terrorist attacks, he has virtually ignored the mounting threat of our looming fiscal crisis. This movie explains why a nation, like a family, cannot continue borrowing indefinitely without sooner or later facing the consequences. Here a distinguished array of economic experts, activists, statesmen and business executives show why that threat is more real to our nation than most of us would have dared imagine.

A devastating crisis awaits America and it has gone largely unreported in the media. Sooner or later America must begin paying off its debts. In this new documentary, TIME-BOMB, first time filmmaker, we see why America’s binge of borrowing must come to an end or we will all suffer the consequences.

America ignores the message of TIME-BOMB at its peril. Unless we address our “twin deficits” soon, the American economy will be falling like the towers of the World Trade Center, and no one will be remember why the war on terrorism seemed so important.

Contact: John F. Ince: National Correspondent: U. S. News Service

Phone: 415-810-7497

URL:http://www.time-bomb.org/

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For the latest Peter Schiff, go to PeterSchiffBlog.com Today the government released the job report for February, and unemployment dropped to 8.9%. It was reported that 192000 jobs were created. The labor force participation rate, however, reached the lowest level since 1982. The reason that the unemployment rate is going down is that young people are simply dropping out of the labor market. Back in 1982, there were many more single-worker households. During the 80s and 90s, there was a transition to both the mother and father working. This was largely due to necessity because families couldn’t make ends meet because the size of government and tax burden was growing larger. Many of the people who have left the labor force are men who want to work, who are ready and able to work – but who simply cannot find any work. This is because the government has destroyed so many job opportunities and industries. They have also made it more lucrative to not work by collecting unemployment checks. Alan Greenspan was asked on television whether QE2 was going to be a success. He said that he didn’t know, he would need to wait and see what happens. He was also asked about Bernanke and whether inflation was a problem. Greenspan says that Bernanke knows what he is doing, but he is interpreting the data a bit differently than other central bankers. If it’s all just guessing, then why do we need central bankers in the first place? We would be better off replacing him with a chicken that sets …

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Video Rating: 5 / 5

Federal Reserve’s Balancing Act Creates a Unique Situation

Tampa, Florida (PRWEB) February 22, 2006

The Federal Reserve’s consistent increasing of rates since June 2004, and recent statements by new Federal Reserve Chairman Ben Bernanke, have created a unique opportunity for consumers. During a Senate Banking Committee hearing on Thursday, Bernanke refused to say how high interest rates would need to climb in order to balance the economy, but economists predicted at least one more increase at the end of March, when he has his first meeting as Fed chief.

“There are two possible mistakes. One is to go on too long and one is not to go on long enough,” Bernanke said during the hearing. “And, it’s a very difficult balancing act.”

On the future course of interest rates, Bernanke made a statement Wednesday before the House Financial Services Committee saying that he agreed with an assessment made by his Federal Reserve colleagues in January, and that interest rates would probably need to move higher. Because of this gradual increase in the Fed rate, the available rates on fixed and adjustable rate mortgages have converged, and in some cases, inverted.

“For the first time in five years, many lenders have rates on fixed rate mortgages that are almost the same as an adjustable rate mortgage (ARM),” said Karen C. Pooley, President of Star Mortgage, Inc. “This means that many people who shied away from refinancing because the best rates were only available on ARMs, can now get a fixed rate that is much better than what they have now. And even people who have seen the rate on their ARM shoot up in the last year can usually refinance at a lower fixed rate.”

In a speech to the Credit Union National Association early in 2004, Federal Reserve Chairman Alan Greenspan had stated that American’s preference for fixed rate mortgages means many are paying more than necessary for their homes, and suggested consumers might benefit from considering ARMs as an alternative. In fact, a Federal Reserve study at the time concluded homeowners could have saved tens of thousands of dollars in the last decade if they had ARMs. But the Federal Reserve’s policy of raising rates 14 times since June 2004 has challenged the validity of that position today. Normally, the difference between rates for fixed and adjustable rate mortgages can be more than 1%, with the ARMs having the lower rate, but now, for most consumers, the rate is almost the same on both.

There are still millions of homeowners with fixed rate mortgages that have interest rates of 8% or more, and they could save thousands of dollars a year by refinancing before the Federal Reserve’s next meeting on March 27-28. Many homeowners may think they have already waited too long, and that rates are now too high, but that isn’t the case. There are still many programs available from Licensed Mortgage Brokers, who deal with wholesale lenders, that have fixed rates that are in the 6%-7% range, and actually less than the Prime Rate.

“A drop of just 1% in the rate on a $ 200,000.00 loan can lower your payment over $ 1500.00 a year,” said Ms. Pooley, “and many times we can actually lower people’s rates by 2% or more.”

“They can normally save back the total cost of the new loan in 2-3 years or less,” she continued, “and pay little or nothing out of pocket to do it.”

Economists are predicting the Fed will boost rates by another quarter percentage point to 4.75 percent at their next meeting, and that the average rate on home loans will increase by another one-half of a percent or more by the end of the year. Although economists, and Fed officials, disagree on how many more rate increases may be coming, most agree that the Fed’s rate-raising campaign may be coming to an end soon.

According to Ms. Pooley, “The current situation is something that probably won’t last very long, and anyone who wants to get these below Prime fixed rates on a mortgage needs to act now, before the opportunity is gone.”

Star Mortgage, Inc., is a licensed mortgage broker based in Tampa, Florida, and offers prospective clients a free mortgage analysis and consultation. They specialize in mortgages for the Florida market. Further information and a short on-line application are available on their web site at http://www.starmortgagebroker.com.

CONTACT INFORMATION:

Karen C. Pooley

Star Mortgage, Inc.

813-882-8878

http://www.starmortgagebroker.com

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Around My French Table: More Than 300 Recipes from My Home to Yours

When Julia Child told Dorie Greenspan, “You write recipes just the way I do,” she paid her the ultimate compliment. Julia’s praise was echoed by the New York Times and the Los Angeles Times, which referred to Dorie’s “wonderfully encouraging voice” and “the sense of a real person who is there to help should you stumble.”   Now in a big, personal, and personable book, Dorie captures all the excitement of French home cooking, sharing disarmingly simple dishes she has gathered over

List Price: $ 40.00

Price:

Short-Term Interest Rates on the Rise Adjustable Rate Mortgage Holders Prepare for Increase in Interest Rates

Atlanta, GA (PRWEB) August 14, 2006

Interest rates are on the rise and many homeowners who have adjustable rate mortgages may see increases in their forthcoming annual adjustments, according to lenders and mortgage brokers nationwide.

Rising interest rates this year have prompted many homebuyers to apply for traditional fixed-rate loans and avoid adjustable-rate mortgages, also known as ARMs, according to the Mortgage Bankers Association, a Washington-based industry trade group.

Federal Reserve Chairman Alan Greenspan made it clear in 2004 that the Federal Reserve would be increasing short-term interest rates at a “measured pace.” With the US Dollar at its weakest point in seven years, oil prices unstable and the evaluation of other economic indicators, the Fed Funds Rate was hiked seven times from 1.0% to 2.75% since June 2004 in an effort to curb inflation. Some economists believe it won’t stop until the Fed Fund Rate hits 4.0%.

Consumers with revolving debt accounts tied to the prime rate have seen the effect through rising interest rate charges, as the prime rate always rides 3% above the current Fed Funds Rate.

Mortgage interest rates are affected indirectly by these changes. An increase in the Fed Funds Rate has an impact on financial markets as a whole, but mortgage rates may go up or down based on the perception investors have of current economic statistics and their reaction to the Federal Reserve’s after-meeting statements.

In general, when economic data indicates we have a slow-down occurring in our economy, investors tend to sell off stocks and reallocate that money to the safe haven of bonds and mortgage-backed securities. The purchase of mortgage-backed securities drives interest rates down. When economic data says there is growth in the economy, the stock market typically rallies and mortgage-backed securities sell off to fuel that stock market rally. This drives mortgage interest rates up.

Our current market reflects the reaction of investors reading between the lines on comments made by the Fed, and mortgage interest rates are going up. This will have an affect on homeowners with adjustable rate mortgages (ARMs) tied to indexes that are based on short-term interest rates. This includes the 11th District Cost of Funds, 12-Month Treasury Average (MTA), London Inter Bank Offering Rates (LIBOR) and others.

This doesn’t mean that everyone with an adjustable mortgage is in trouble right away. Some indexes are more volatile than others. COFI moves much slower than other adjustable rate indexes, while the LIBOR fluctuates with more volatility. But remember, when an ARM adjusts, the new interest rate is a sum of the borrower’s fixed margin plus the current rate of the index the mortgage is tied to.

Consumers who foresee paying an interest rate that is significantly higher may want to consider refinancing to take advantage of the stability of a fixed rate mortgage.

This is also a good time for borrowers who started out in an adjustable rate loan due to a poor credit score to transition into a fixed rate loan if they can. Once a track record of making mortgage payments on time and in full has been established, this should have a positive effect on the credit score and there’s a good chance the borrower may now qualify for a loan with a lower interest rate.

As with any decision to refinance, it is important to take the terms of the existing loan, the cost of the new loan, and the borrower’s long-term needs into consideration. A qualified mortgage professional should help weigh out the options by providing a clear assessment of available loan programs for the consumer.

Joseph Whitaker is a loan officer affiliated with Cotton State Mortgage, a Licensed Broker in Georgia. Free consultation and a 10-Year History of ARM Indexes are available by calling 770-392-0764.

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More Alan Greenspan Press Releases

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Driving Growth with Technology Transfer – Niakwa, Inc. and Innovation Management Partners, LLC Form Strategic Alliance

BusinessWire

Ferndale, WA (PRWEB) January 9, 2007

For any growth-driven company like Niakwa, finding the new technology that fits strategically with their product development growth plan is critical to success, now more than ever. A quote from Alan Greenspan, former Chairman of the Federal Reserve, gives some perspective. He said, “…the increase in the value of raw materials has accounted for only a fraction of the overall growth of the U.S. GNP. The remainder…has occurred in the development of ‘ideas’ in products and services that consumers’ value.” A 2003-04 McKinsey report confirms this, citing that U.S. licensing revenues have increased from $ 15 billion in 1990 to $ 120 billion in 2003, and are expected to reach $ 500 billion by 2010.

Finding the right innovation at the right time though, can be daunting. In 2005, universities and research labs secured a total of 7,000 patents, yet only 500 of them (7%) made it into the marketplace. That means that 6,500 (83%) of these patented inventions and ideas for improvements were stuck on the shelves of their developers, not being put to productive use in the world around them.

There are millions of matches available to be made between the creators of new technologies (http://www.innovationmgt.com/ServiceTechnologyAcquisition.cfm) and companies like Niakwa, Inc (http://www.niakwa.com), who can extract the full potential of their value in the marketplace. Jason Dederich, President of Niakwa said, “Growth is a key to success in any business, and growth requires innovation. The wise executive realizes that there are tremendous opportunities surrounding innovations that originate outside his or her own organization. Yet the demands of running a business are such that it is difficult to create the time and the network necessary to find these outside innovations. To me, therein lies the greatest value of the Innovation Management service (http://www.innovationmgt.com/ServiceStrategicRelationships.cfm) – reaching the previously unreachable technologies, evaluating them, and putting them within my grasp.”

“Innovation Management looks forward to working with Niakwa to identify potential technologies that will expand their product offering, and acquisition opportunities that fit its strategic vision for growth,” commented Jeffery Bruce (http://www.innovationmgt.com/CompanyManagementTeam.cfm) , Managing Partner, Innovation Management Partners, LLC. Through its strategic alliance programs, Innovation Management assists companies in enhancing their new product development pipeline with the acquisition of proprietary intellectual capital from universities and laboratory research centers.

For additional information on locating new technologies outside the borders of your own R&D Department or matching your own internally developed innovations to interested buyers in the marketplace, visit http://www.innovationmgt.com (http://www.innovationmgt.com).

About Niakwa, Inc. – Privately owned, Niakwa is headquartered near Chicago with its research and development laboratory in Winnipeg, Canada. Since the early 1980s, Niakwa has provided high quality, high performance, highly portable development software and services to application developers worldwide. For more information about Niakwa, Inc., please visit its website at http://www.niakwa.com (http://www.niakwa.com).

About Innovation Management Partners, LLC – Innovation Management Partners, LLC provides comprehensive solutions for transforming and embracing the Innovation Ecosystem, by helping companies commercialize and source new technologies, managing intellectual property, and providing intellectual property consultation. Innovation Management is a leader in technology transfer and providing unparalleled access to breakthrough technologies. Whether it is sourcing from Asia, Europe, or North America, Innovation Management is developing a network to source technologies. For more information about Innovation Management Partners, please visit its website at http://www.innovationmgt.com (http://www.innovationmgt.com).

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