In Greenspan's speech today before the National Italian American Foundation:
The 'greater economic stability' is a sham. There is a dearth of economic stability when the US has a:
Moving forward, I trust that we have learned durable lessons about the benefits of fostering and preserving a flexible economy. That flexibility has been the product of the economic dynamism of our workers and firms that was unleashed, in part, by the efforts of policymakers to remove rigidities and promote competition.
Although the business cycle has not disappeared, flexibility has made the economy more resilient to shocks and more stable overall during the past couple of decades. To be sure, that stability, by fostering speculative excesses, has created some new challenges for policymakers. But more fundamentally, an environment of greater economic stability has been key to the impressive growth in the standards of living and economic welfare so evident in the United States.
- ~ $700 billion trade deficit
- 8 trillion Federal Debt
- ~ 550 billion Federal Deficit ( war spending included)
- Housing Bubble
- High Energy prices ( oil & natural gas)
- a non existant personal savings rate ( actually negative )
Greenspan is about to retire. The next Fed Chairman will have to deal with a very different economic landscape next year.