Sunday, October 4, 2009

Greenspans says Unemployment to Exceed 10 percent

When you have former Fed Chairman Alan Greenspan saying that Obama has dropped the ball on the economy, it would be considered significant. The former Fed Chairman said that he predicts the unemployment rate will exceed 10 percent and will stay there for a while.

On ABC’s “This Week” this past Sunday, Greenspan said that a growing number of Americans who have been out of work six months and longer is a big concern because people who are out of work that long lose skills over such a prolong period.
Now, here is a rare eye opener? When asked if we need to see another economic stimulus to revive a sagging economy, the brilliance of Greenspan overwhelmed me. He said that a second economic stimulus is not called for because more than half of the current stimulus is not effect and because the nature of the recovery is not yet clear.

In other words, why spend more if the first one is not spent yet. Again, no kidding Sherlock! On the other hand, a crisis is a bad thing to waste. So, I wouldn’t be surprise if Obama will try to push for second pork spending stimulus bill.