Tuesday, February 23, 2010
Ah, but why then Mr. Greenspan has monetary policy and the Fed's actions done nothing to restore credit? All the "lessons" the MMTers thought they learned have now been put to the test and found wanting. And their response is the Khyber pass approach: more of the same. Its Cultish.
Small businesses and the jobless are still suffering from the aftermath of a credit crunch that was "by far the greatest financial crisis, globally, ever" -- including the 1930s Great Depression, said Greenspan in an address to a Credit Union National Association conference.
"It's really an extraordinarily unbalanced system because we're dealing with small businesses who are doing badly, small banks in trouble, and of course there is an extraordinarily large proportion of the unemployed in this country who have been out of work for more than six months and many more than a year," said Greenspan, who headed the Fed from 1987 to 2006.