Greenspan: U.S. in recession - recommends settling the crisis by committing taxpayers' money

[cyberpj]

We did it - but you have to pay for it. Again. Anyone surprised?


Greenspan, on CNBC: U.S. in recession
Tue Apr 8, 6:28 PM ET

WASHINGTON (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Tuesday the U.S. economy was in recession, and said it would be appropriate to tap public funds to resolve the mortgage-related crisis that has helped pull the economy under.

snip -
In an interview with CNBC television in which he defended his chairmanship of the U.S. central bank against charges that his policy missteps had laid the groundwork for the current crisis, Greenspan said Fed decisions on his watch were rationally constructed based on evidence at the time.

snip -
The U.S. economy will not stabilize until housing markets recover, Greenspan said. To speed that process, the Bush administration should look to the 1980s savings and loan crisis for lessons on settling the crisis by committing taxpayers' money to the project.

"I think if you're going to deal with a situation like this it's an issue for appropriated funds of the Treasury to set up something like the Resolution Trust Corporation, which as you remember was very successful in resolving the S&L crisis," Greenspan said.

article:
http://news.yahoo.com/s/nm/20080408/bs_nm/usa_economy_greenspan_dc;_ylt=AjVZDRRisxwVbbje8juGajioOrgF

[jimshoes]

1. How about we start jailing some of these thieves?

:grr:

[Skittles]

7. DAMN STRAIGHT

why do we have to bail out these fucking criminials but when the little people ask for help they scream PERSONAL RESPONSIBILITY? :o

[jimshoes]

8. My first thoughts were infinitely harsher

but I thought better of expressing it publicly.

[cyberpj]

9. Because in many cases, the accomplices would have to do the jailing. nt

[HowHasItComeToThis]

2. SAVINGS AND LOAN WAS A REPUBLICAN THIEF TOO

:puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:

[cyberpj]

6. I believe it was a Bush, in fact. Now see post #5 for more sickness... nt

[keep_it_real]

3. Obama said we are in recession before Hillary or Greenspan

"Now, as most experts agree, our economy is in a recession"

March 27, 2008

http://www.nytimes.com/2008/03/27/us/politics/27text-obama.html?_r=2&adxnnl=1&oref=slogin&pagewanted=all&adxnnlx=1206641411-cQoLCvbbvjABbzSjf0aUEg&oref=slogin

[MisterP]

4. oh, what does Ayn Rand's love monkey know? n/t

[cyberpj]

5. BTW - Anyone seeing anything more on this? "Carlyle Group's Plan to Takeover the Banking System"

Thursday, April 3, 2008
Carlyle Group's Plan to Takeover the Banking System

So what's Treasury Secretary Henry Paulson's call for changes in regulation of the financial markets all about? A clue may have been revealed today by Randal Quarles, former Under Secretary of the Treasury who led the Treasury Department's effort in the coordination of the President's Working Group on Financial Markets and is a current Managing Director at Carlyle Group.

snip-
He said that public markets will not supply the necessary funds because they don't have the capabilities to study in detail the risks and potential rewards of the complex financials of financial institutions. He said private equity firms have the capabilities to do so and to supply the necessary funds. (N.B. Carlyle Group is a private equity firm).

snip-
Quarles stated that some changes in the structure of regulations that Paulson proposed were necessary but would take time to develop. He specifically stated that one regulation that needed to be changed is the limitation on the size of positions that non-banks can take in banks. (Note: Limitations in the size of non-banks positions in banks now limits Carlyle Group from taking large positions in banks).


During the Q & A session, one questioner summarized Quarles talk this way:
So what you said here today is that you would like to see regulatory changes to make it easier for private equity to take major positions in banks? And private equity, through various entities on and offshore gets its money from banks. So what you want is an environment where private equity can borrow from banks to takeover banks?

In response, Quarles laughed.
We might add this private equity acquisition of financial institutions will go on as the general public is scared off from investing in the financial institutions by scare headlines, or as Quarles would put it, "Public markets just don't have the capabilities to judge the risks and rewards of the various financial institutions." Translation: The public is not clued in on which firms the insiders have decided to let survive, like JPMorgan, and which they are going to takedown, like Bear Stearns.

link:
http://www.economicanalyticsgroup.com/2008/04/carlyle-groups-plan-to-take-over.html

on edit: - will also post this as a standalone post

[SpiralHawk]

10. "All your money are belong to us. Smirk." - republicon homelander cronies

Republicon Commander AWOL gets jiggy with the looty:

[SpiralHawk]

11. "Yeah, the S & L 'solution' totally rocks (for republicon cronies). Smirk.." - Neil 'Silverado' Bush

http://www.washingtonpost.com/ac2/wp-dyn/A35297-2003Dec27?language=printer

"Neil Bush is the latest manifestation of a long tradition in American life -- the president's embarrassing relative...

"...In the late '80s and early '90s, Neil Bush embarrassed his father, George H.W. Bush, with his shady dealings as a board member of the infamous Silverado Savings and Loan, whose collapse cost taxpayers $1 billion."

[Supersedeas]

12. all this recession talk is just the liberal media