8/6/2019 Green Spanning: Alan Greenspan "They just made it worse with Greece"

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Pamria, Pacific Asset Management

Pamria, LLC Pacific Asset Manag

July 1, 2011

sound the alarm that Wall Street was over-le

But he's sounding plenty of alarms now.

"The chances of Greece not defaulting are v

Then on Thursday, he reiterated his gloomy

"It's very evident to anybody that looks at thGreece," he said. "As the Greek default goe

Greece: Back from the brink - for no

While U.S. banks don't hold a significantEuropean economy, causing American com

"It's going to affect the whole structure of pro

Greenspan has also been rather blunt with nbond purchases Thursday, as a way to kee

But on CNBC, Greenspan said "there is no e

"Mortgages, if anything, are weakening in nuof money into the system basically worked,"

If anything, the only benefit of QE was that it

He also told Bartiromo, the effect of the Fed'for often citing the "wealth effect," where just

irect (206) 933-1600 Toll Free (877) 637-2767 F

ment WA State & SEC (Pend) Reg. SIPC, FDIC thr

Former Federal Reserve Chair Alan Greensparounds with a rather dire outlook for the U.S. e

In the last few weeks, he has said he thinks it'sGreece will default on its debt -- which could eweak U.S. recovery and possibly drive the natirecession.

He has also called out the stimulus policies ofBernanke, stating that he thinks they haven't w

Greenspan, who served as Fed chair from 198criticized for keeping interest rates too low for t

veraged with toxic mortgage debt, leading to housing bubble.

ry small," Greenspan said in an interview with Charlie Rose two

forecasts in an interview with CNBC's Maria Bartiromo.

data the major force driving our economy indirectly through theup in probability, we run into all sorts of problems."

mount of Greek debt , Greenspan is concerned a default wouldanies who have affiliates there to suffer major losses.

fitability in the United States," he told Bartiromo.

egative critiques of the Fed's current policies. The Fed wrappedp interest rates low and stimulate more borrowing and spending.

vidence" that that policy -- known as quantitative easing or QE

mbers and consumer credit is very dull -- so that there is no evidhe said.

made U.S. exports cheaper abroad, by weakening the dollar, Gr

stimulus was partially psychological, making investors feel richa perceived feeling of wealth can drive stock prices and U.S. co

x (206) 600-3175

ough C.S. & Co., Inc.

n is making the mediaonomy.

"almost certain"xacerbate the alreadyon back into a

his successor Benorked.

7 to 2006, is oftenoo long and failing to

weeks ago.

inancial markets, is

ripple through the

up $600 billion in

-- actually worked.

nce that huge inflow

enspan said.

r. Greenspan is knownsumption higher.