You may have seen the former Federal Reserve Chair Alan Greenspan talking this morning on ABC’s This Week program with George Stephanopoulos in his usual convoluted, maddeningly elliptical fashion about the US economy but observing in a moment of singular clarity that it was by far the worst economic crisis he’s seen in his career.
“There’s no question that this is in the process of outstripping anything I’ve seen, and it still is not resolved and it still has a way to go,” he said.
“Outstripping” — well there’s a lovely new buzzword to describe the way in which the industrial heartland of North America has been raped and left for dead in the name of globalization, corporate efficiency and other free-market rationalizations over the past twenty years.
Asked if we’ll see the failure of more financial institutions, Greenspan affirmed “I suspect we will.” Not to worry… Great things are afoot in small-town America!
As for “the process of oustripping” Greenspan said that “…it will continue to be a corrosive force until the price of homes in the United States stabilizes. That will induce a series of events around the globe which will stabilize the system.”
It reminds us a little of this.