Euro 'breaking down': Greenspan

France 24 ^ | 8/23/2011 | AFP

[bruinbirdman]

The euro is breaking down and Europe's debt crisis is holding back the US economy, former US Federal Reserve chairman Alan Greenspan said Tuesday.

"The euro is breaking down," the ex-US central bank chief told a Washington forum, according to Dow Jones Newswires.

"The reason we're so sluggish is the level of uncertainty," he said at the Innovation Nation Forum . . .

[Real Cynic No More]

So, which is the cause and which is the effect?

I'm convinced that the U.S. fiscal situation is also holding back the European economy.

[the invisib1e hand]

Incredible comment - gives thrust to the “eurobond” argument, which I warned about 13 years ago, still quite wet behind the ears.

[TexasFreeper2009]

lol

they finally found someone else to blame besides Bush for their failures!

[Real Cynic No More]

It's all one big balancing act, and the obama administration has upset that balance, with unintended consequences.

The man has no sense of situational awareness whatsoever.

[DoughtyOne]

Funny, sending millions of our jobs overseas, is never mentioned as problematic.

[Nervous Tick]

>> The euro is breaking down and Europe’s debt crisis is holding back the US economy

Thank You, Mr. Bubble-Head, for reminding us of the role *you* played in this mess.

[SueRae]

Alan the fossil is shilling for 0bama. Next he’ll blame locusts..

LOCUSTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Former Proud Canadian]

How about this for an incredible comment:

Greenspan also said he did not expect the United States to fall back into recession, though the odds of it have increased.

HAH!

[Nachum]

Alan Greenspan on why the economy isn’t Obama’s fault...

http://www.youtube.com/watch?v=JFvujknrBuE

[Justice]

So, which is the cause and which is the effect? I'm convinced that the U.S. fiscal situation is also holding back the European economy.

The Free World has no Leader.

Fix that cause and positive effects follow.

[boomop1]

Maybe he meant rise up from depression.

[Jonty30]

I think one economist has referred to what is happening as finding its intrinsic value.

[Obadiah]

Exactly, its the tsunami, its the Euro breaking down, its the caribou in Manitoba, its bad luck, its evil Republicans — anybody but Obama.

[PieterCasparzen]

Many governments have issued more bonds, i.e., borrowed more, relative to their gdp, than is practical and wise. The ability of these governments to pay back the principal through taxation, therefore, is only realistic if they contract the scope of their government and thereby promote private enterprise growth. This will halt the accumulation of new debt and allow for healthy tax revenue. But as government spending and regulation continue unabated, this is keeping the debt pile growing, and the payoff point - even with correction actions being taken - is being pushed out ever farther.

These bonds are owned as assets by the private sector. If the principal can’t be repaid, and all these governments are merely issuing new debt to pay old, that is the definition of a ponzi scheme.

Borrow and spend must stop soon.

[algernonpj]

Funny, sending millions of our jobs overseas, is never mentioned as problematic.

Well remember this is the same man who thought more H-1B's would solve the housing crisis.

"The most effective initiative, though politically difficult, would be a major expansion in quotas for skilled immigrants," he said.

[Sawdring]

which I warned about 13 years ago

That was you on the corner with the "The Euro Will Breakdown In 13 Years" sign? How very prescient!

[Jonty30]

Oh don’t you worry.

It will stop very soon, and very sudden.

Sorta wall-like.

[the invisib1e hand]

That was you on the corner with the "The Euro Will Breakdown In 13 Years" sign? How very prescient!

Actually, no, it was the "euro will drive up interest rates by introducing euro denominated bonds which will compete with US treasuries for capital" sign. It was a sandwich board, needless to say.