| Submit your comments on this article |
| Europe |
| Alan Greenspan sez Brexit is the '€˜tip of the iceberg' for Europe |
| 2016-06-25 |
| [Market Watch] WASHINGTON -- The global economy is suffering from even bigger woes than the decision by U.K. voters to leave the European Union, Former Federal Reserve Chairman Alan Greenspan said Friday. "This is just the tip of the iceberg," Greenspan said in an interview on CNBC. "The global economy is in real serious trouble." Yes, 'globalism' is in serious trouble indeed, but he stopped a bit short of saying that. The rejection of British voters of the status quo in Europe was fueled by a "massive slowing" in the growth rate of real incomes that is widespread across Europe, Greenspan said. This, he said, is creating serious political problems that are not easy to resolve. Behind the slowdown in income is the sharp drop in worker productivity, according to Greenspan. Governments have to cut entitlements to reflect this weakness, he said. The biggest concern is not a recession, but stagnation, the former Fed chief said. "The euro-area...is failing," Greenspan said. "Greece is in real serious trouble and it is not going to continue in the euro very much longer irrespective of what is going on currently," he said. Asked what he would do if he was still Fed chief, Greenspan said: "I would worry." |
| Posted by:Besoeker |
| #8 Look at Allie G figuring it out. No wonder he scores all the hot chicks. Andrea Mitchell? That's his wife isn't it? Ugh! |
| Posted by: CrazyFool 2016-06-25 14:45 |
| #7 Raj, Greenie was saying this stuff eight years ago but the media didn't want any adult supervision of our monetary policy while THE ONE was in power. Not that the one (lower case intentional) is a LAME DUCK, the media is letting the critics out of the closet. |
| Posted by: Bill Clinton 2016-06-25 14:18 |
| #6 Call him Greenslime. |
| Posted by: Anguper Hupomosing9418 2016-06-25 13:32 |
| #5 Look at Allie G figuring it out. No wonder he scores all the hot chicks. |
| Posted by: regular joe 2016-06-25 13:23 |
| #4 Only three days ago Greenspan was utterly Apocalyptic regarding any Brit move to leave the EU. Now he is being Apocalyptic regarding the Global Economy. And tomorrow it will be the USA, and on monday it will be Texas. |
| Posted by: Ulusoque Speaking for Boskone3139 2016-06-25 12:26 |
| #3 "This is just the tip of the iceberg," Greenspan said in an interview on CNBC. "The global economy is in real serious trouble." Where was this 'sage advice' eight years ago, asshole? Some of us knew something bad was happening when QE was implemented by your successor Bernanke. You wouldn't happen to have anything to do with that, now would you? |
| Posted by: Raj 2016-06-25 10:03 |
| #2 QE in action. It drops yields (i.e. makes investment more expensive), keeps failed investments from being removed from the economy and rewards land-owners at the expense of wage earners. |
| Posted by: Bright Pebbles 2016-06-25 07:25 |
| #1 Macroeconomics in action. |
| Posted by: g(r)omgoru 2016-06-25 04:00 |