Below is the top story on Reuters: it shows a recent trend where Greenspan has had to repeatedly warn against government spending and yet the markets and the party favored by the markets doesn’t react…
There was a point when the government and markets would quiver if Greenspan looked like he had got out of bed on the wrong side. Nowadays, idealogy and faith seems to be driving capitalism too – a dangerous thing.
Greenspan Warns Deficits Endanger Economy
“Much of the Fed chairman’s testimony echoed prior cautions he has made to Capitol Hill lawmakers. He stressed that steps to fix the problem were essential.
“As the latest projections from the (Bush) administration and the Congressional Budget Office suggest, our budget position is unlikely to improve substantially in the coming years unless major deficit-reducing actions are taken,” the Fed chief said.”
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