Wednesday, May 18, 2005

Greenspan must go

Alan Greenspan is supposed to step down come January. On Fox News today, the White House is prepared to ask him to stay on so that they can have time to find a replacement. Its only May, and Bush can't find a replacement within 8 months?

I used to have respect for Alan Greenspan, but lost it when he came up with his 'irrational exurberance' speech in 2000. At the time, the stock market was at its peak and Greenspan was in effect saying "The economy is doing well and I have no idea why". He saw inflation when no one else did and he raised interest rates 6 times in 2000 until he got what he wanted - the bubble burst.

Bill Clinton had a different economic philosophy than George Bush, but Greenspan deftly agreed with both Presidents when it was politically expedient. This exposes him for what he really is - a political hack who does not have the guts to do what is right. This is a guy who railed against deficits under Clinton and is strangely silent about the massive wealthfare program and its resultant historical deficits under Bush.

According to Big Al, the economy is doing just great. Never mind the millions of people who have lost their jobs since 2000 and have yet to find comparable ones with pay and benefits that they had before. And what has he done so far this year? Raise rates at least 6 or is it 7 times. With high oil prices, how can making it more expensive to borrow money help the economy?

With some many people over 40 having a tough time keeping their jobs, isn't it time to let 79 year old Al go? We need someone at the Fed whose focus on making it easier to create jobs, not making it more expensive.

Leave Al, leave and don't let the screen door hit your butt on the way out.


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