Saturday, July 2, 2011

Greenspan, Feds Massive Stimulus Had Little Impact on Economy

Former Fed Chairman Alan Greenspan criticizes his predecessor's judgement. In fact, Alan Greenspan and current Fed Chairman Ben Bernanke are responsible for the erosion of the dollar and the current crisis this country is facing. Alan Greenspan is pinning the economic failure to the current Fed Chairman. Greenspan bashes Bernanke's QE1 and QE2 by saying it did little to loosen credit and bolster the economy. It is very similar to Obama's stimulus bill, which had an adverse effect on unemployment. Not only is Obama a failure, but also, his Administration is a complete failure too.

(CNBC) The Federal Reserve's massive stimulus program had little impact on the U.S. economy besides weakening the dollar and helping U.S. exports, Federal Reserve Governor Alan Greenspan told CNBC Thursday.

In a blunt critique of his successor, Fed Chairman Ben Bernanke, Greenspan said the $2 trillion in quantative easing over the past two years had done little to loosen credit and boost the economy.

"There is no evidence that huge inflow of money into the system basically worked," Greenspan said in a live interview.

"It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion," he said. "Aside from that, I am ill-aware of anything that really worked. Not only QE2 but QE1."

The former Fed chairman himself has been widely criticized for the low-interest rate policy in the early and mid 2000s that many believe led to the 2008 credit crisis.