Mr. Greenspan Warns of Recession

[Issachar]

WASHINGTON (AP) -- Former Federal Reserve Chairman Alan Greenspan says the odds the U.S. will fall into a recession are "clearly rising" and he believes economic growth is "getting close to stall speed."

Greenspan, who ran the central bank for 18 1/2 years, until early 2006, offered his views on the economy in an interview on NPR News' Morning Edition that will air on Friday. Excerpts of the interview were released on Thursday.

A severe slump in the housing market, a stubborn credit crisis and turbulence on Wall Street are endangering the country's economic health. Growth in the current October through December period is expected to have slowed to a feeble pace of just 1.5 percent, or less.

Economists, including Greenspan, have warned that the chances of a recession are growing.

Asked whether the economy will tip into a recession -- something that has not happened since 2001 -- Greenspan said, "It's too soon to say, but the odds are clearly rising." More (http://biz.yahoo.com/ap/071213/greenspan_economy.html)

Issachar

[DawnGrace]

Ok--to make a point here....How many of you REMEMBER the 2001 Recession?
As I can recall in my entire lifetime there have been MORE than several recessions, during a time of which we had a housefull of kids, bills, etc and you know what? Living in God's economy, I can't seem to remember any of them affecting us personally --at least the way the TV makes you think it will feel like--a total fear mentality.

[Issachar]

A recession is no big deal. They happen often. They are a normal part of an economy ......... up and down and up and down and up ..... nothing new.

The problem is when a recession "wants" to happen and can't because of all the artificial "money" that is input to the system. Then when one does occur, it is more severe. This is the case now. Add to that, something that never existed until the past six or seven years; the hokey house loan types that have come into being. Add to that the number of nations abandoning or considering abandoning the US dollar. Add to that the debt levels in the US; national, state, county and local and personal .... all at truly unprecedented levels.

The next recession may be just another run of the mill recession. It may not ... depends on many factors. Eventually though, there will be a recession that stays down and continues down. That must be because of how a fiat economy is structured. 100% of them in history have failed.

Issachar

[Cameron]

Mr. Greenspan reminds me of former President Bill Clinton. He just won't go away. :idunno

Let Mr. Bernarke (sp) speak for himself. If recession comes we will be o.k. If depression comes we will be o.k. Its all perception.

[Issachar]

If depression comes we will be o.k. Its all perception. I'm not sure if you are being serious or facetious? Cold and hungry and hardship and homelessness, especially for children, is more than a perception.

I'm not sure why you said that?

Issachar

[Cameron]

Sometimes being cold and hungry is the best motivator for success. Depression era children grew up to fight WWII and become the greatest generation.

Imagine our kids if they no longer had Ipods, video games, designer clothes, cars, luxury vacations, computers, cell phones, etc.

The perception is that we think losing all those things would be devestating. I can remember basic living, sometimes being cold and hungry, and life was much simpler and caused me to look forward to better days.

Its like a purging that is necessary every few years to bring us back to reality.

[Issachar]

Well, Cameron ... we DEFINITELY agree on a major part of what you said.
I would love to see most of the electronic trinkets and JUNK disappear. I would love to see more kids reading or doing something creative with their life. If all those things you listed did go away, I'll be right there with you rejoicing. They are not in my house. I wouldn't have them if I could afford them. My kids think most of that stuff is a waste of time ....... they see their friends with them and sort of roll their eyes.

Cold? Hungry? Possibly homeless? Well, in and of themselves, not too insurmountable .... been there; done that. I have a deep appreciation for every little thing. I really do. Things are hard for us now ...... hard compared to the US standard that is. We live where it gets very cold and is very cold now in fact ..... we haven't had heat in our van for two winters now. We're into the third now. Some might think ... "get the stupid thing fixed for cryin' out loud!" I say they don't understand. Of course we would if we could. We do without a lot of "things" but we do have family time every night and we sleep well. We don't have the best meals, especially the past couple months, but we eat. We don't need or want any pity. We're content. Jesus sees to that.

We won't notice even a moderate recession ...... we may not notice a mild depression. But we are ready for whatever for our God has overcome the world.

Issachar

[Issachar]

In fact, I happen to believe that the Lord is not too pleased with the church, as a whole, in America right now. He WILL fix it. The fix isn't pleasant, imho. It suffers from affluenza and needs to be cured. We won't do it voluntarily, generally speaking.

Issachar

[keylan]

The ressesion in 2001 wasnt a big deal, it was short and mild. It ended when the intrest rates started another bubble, it never worked through as it should have. Ressesions cause consumers to retrench, pay off debt and save. This has not happened. The debt that most Americans carry now is not sustainable, especially considering inflation [Im talking real inflation not government numbers]. We have a big bubble to work out of the economic system. This ressesion will be as bad as the ones in the 70's. If your old enough you remember those times. For a whole lot of people hunger and homelessness was a fact of life. Back then welfare was more of a saftey net too.

My advise get out of debt as much as you can. Have an emergency fund - you should not count on any paycheck other than the one you just earned. Nor should you spend future paychecks.

I agree that the present generation would do a whole lot better with a whole lot less. Prosperity is a two edged sword, it tends to spoil people. Remember Sodom and Gommorha were chastised for their excess as well as sexual sins.

[Cameron]

Issac....people like you are the salt of the Earth. You lack some things, yet you are not bitter.

Too many people today become bitter when worldly things go sour and then want to blame others for their plight and have the government "fix it."

Alabama has a song called "Song of the South." One verse goes like this:

Somebody told us that Wall Street fell.
But we were so poor that we couldn't tell.

That was part of what I meant by "perception." If we perceive that we are doomed, we are. But if we perceive that there is coming a better day, it will.