Alan Greenspan is a weenie.

[cyeh]

So let me get this straight. So a couple of years ago, under pressure from the Bush administration, Alan Greenspan came out in favor of the Bush tax cuts. This was when the Fed was still respected and actually had some power over the economy.

Now Alan Greenspan is saying we need to stop deficit spending and return to the fiscal responsibility of the 90's (ala under Clinton).

So let me get this straight.

So when the Fed was invincable, Greenspan played to the Bush administration.

Now when the Fed is fucked, they call for the fiscal responsibility they should have been calling for all along.

Can you smell the stagflation?

Here's a primer for you non-econ folks out there.

So when inflation starts to rise, the first thing the Fed usually does is raise interest rates in response to keep it in check. But this time it can't do that beacuse:

a) The economy is still in a very precarious situation.
b) The only thing propping up the numbers right now is the housing market. If you raise the rates, you end up killing the housing boom, and destroying the lives of (stupid) people that are over-leveraged in mortgages.

So the Fed is caught. Raise interest rates and kill whatever economic recovery there is or lower interest rates, and watch inflation kill everyone.

And they say there is no karma.