Former Fed Chairman Alan Greenspan said on ABC's This Week this morning that he expects the unemployment rate -- which has already climbed to 9.8 percent -- to top 10 percent before it starts trending downward.
"My own suspicion is that we're gonna penetrate the 10 percent barrier and stay there for awhile before we start down," Greenspan said.
In the meantime, Greenspan said that he thinks the U.S. should extend unemployment benefits and give tax credits to make sure the unemployed are able to keep their health insurance coverage.
"This is an extraordinary period," Greenspan said. "And temporary actions must be taken."
What Greenspan doesn't support is another stimulus package.
"In trying to do too much, you can actually be counterproductive," Greenspan said.
The former Fed chairman said there's "considerable debate" in the economics world over "how effective the stimulus package is" and that "it's far better to wait and see how this momentum that's already begun to develop in this economy carries forward."
greylox
October 4, 2009 10:50 AM
**Just one question. Why does anyone care what this genius has to say?
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spankusmaximus
October 4, 2009 11:03 AM
Take whatever Greenspan says and expect the exact opposite.
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Captain Dan
October 4, 2009 11:07 AM
This is the man who collaborated with former President Bush to cause the Bush Recession, why is he being treated as if he had anything relevant to say?
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nellieh
October 4, 2009 12:06 PM
He should know! He is one who told the banks to open the purse strings and the mattress! I am impressed when they use the term 'creative financing.' a euphisim for financing inelegible applicants. It should be called by it's real name; predatory lending!
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marty9957
October 4, 2009 12:56 PM
I was telling people on the internet in January that unemployment would reach double digit under Jimmy Carter and FDR the second. Nothing surprising to me. This is what 66 million people asked for. Many now have second thoughts I'll betcha. Liberal economic policies was the last thing we needed.
There is no room for politicians with socialistic tendencies in our government.
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Armageddon T. Thunderbird
October 4, 2009 5:36 PM in reply to marty9957
Tax cuts for aristocrats - that's what we need.
There is only one kind of Capitalism - crony capitalism.
Off with their heads.
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Chris Weagel
October 4, 2009 12:58 PM
I love Alan Greenspan. I love having him as a glitteringly dull example of how rigged our system is. The fact that this dipshit lives like a King while people in this country and around the world are crippling themselves at pointless jobs just to afford food tells you everything you need to know about modern capitalism.
I can't wait for the Meet the Press episode where his face finally slides right off his head.
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sisterkevin
October 4, 2009 6:08 PM
That's really insightful of you Alan, I mean telling us what we already know. I'm surprised though you didn't go into your "it wasn't my fault" routine that you tried about 6 months ago. You were part of the problem, a big part, the face of the booming economy, the man all our politicos listened to. Why didn't any of the experts take him on. Pathetic and shameful. Go away Alan and please don't come back. Life is hard enough these days.
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The Bobs
October 4, 2009 6:11 PM
If Alan Greenspan had any sense of decency or responsibility he would be too embarrassed to show his face on TV. He is human garbage.
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Quaker in a Basement
October 4, 2009 8:18 PM
The jobless rate is at 9.8 and Greenspan's prediction is it might, just maybe go to 10? Way to go out on a limb there, Al.
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hsr0601
October 5, 2009 3:36 AM
I think the "early adoption" of 21st energy and health care reform is capable of putting the job market on a solid ground.
As a major driver, IT industry stalled and stranded in a game industry for the lack of 21st energy policy over the stretch of two petrol wars needs to evolve into the all but indefinite energy, medical, and academic industry where the investors are eagerly waiting for policy-makers to act now ((100s of Companies (with $13 Trillion) Are Demanding Strong Climate Deal in Copenhagen just like environmental activists)), which I guess is why the far-reaching and long overdue health care and 21st energy bill have come into focus.
I still think the densely populated countries are consuming such incredible natural resources right now that inefficiency as it is is not allowed any more. In the face of drastic dent in fossil fuels, supposedly computer came up as a primary and the most efficient substitute for them.
We are now living in a digitalized society, and those energy, medical, and academic industries are the last remainders to work out and the most expansive, potential arenas as they are involved in all generations, unlike a game industry.
In respect to the adoption of two crucial changes, the sooner, the much better because reinstating the jobless costs far more than lay-off, as is often the case. I'd say it is past time to end bickering around common sense : A public health policy, contemporary energy, and financial normalcy.
Thank You !
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MrPidger
October 5, 2009 8:13 AM
Yes, let's return too financial normalcy and put people back to work. How?
Make products in the US again, that's how. Manufacture things and employ people at home. And tax off-shore labor heavily.
Globalization is raising the living standards of the developing world by bringing our living standard down to their level. All while fattening the pockets of the richest CEOs.
Read the latest Rolling Stone: Wall Street's Naked Swindle.
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sashimi
October 5, 2009 8:40 AM
WHY DO PEOPLE STILL ASK HIM ABOUT ANYTHING?
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