Saturday, August 7, 2010

Alan Greenspan Calls for Massive Income Tax Increase in the Middle of a Recession: Understand Why the Country is Facing Economic Ruin?

For many years I have highlighted the bizarre statements and reckless opinions of Former Fed Chairman Alan Greenspan.  While most of official Washington and the mainstream media knighted him as "Sir Alan" and recommended him for sainthood, I pointed out he was an academic fool who really had no good advice to offer anyone, let alone the financial markets, and was in over his head pretty much every time he opened his mouth.

The collapse of the real estate bubble (which Greenspan never saw coming) and books like GREENSPAN'S BUBBLES: THE AGE OF IGNORANCE AT THE FEDERAL RESERVE by William Fleckstein have sullied his reputation quite a bit these days.  He is more seen as an architect of failure than a designer of robust economic success.

But today, in retirement, playing 39 hours of tennis per day which is his one true love in life, the 84-year old amateur economist still needs to stick his nose back into the political tent.  Only these days people feel no reservation about slapping his snout and shoeing him away like an unruly puppy dog in search of a rubber bone.

Just this week, Greenspan, supposedly a lifelong Republican, urged not for just the repeal of the 2007 Bush tax cuts but ALL of the Bush-era cuts going back to 2003.  This puts him far to the left of even Mr. Obama who only wants the "Tax Cuts for the Rich" to lapse in January 2011.

So, I guess, the way to solve the lack of consumer demand in the economy is to tax the hell out of the very same people who are currently not spending any money at all.  The way to encourage real estate investment, business development, and job creation is to financially rape the very same people who need their own capital to accomplish these goals.

If this idea sounds dumb, it should.  Welcome to the world of Alan Greenspan, where for years people confused "Greenspeak" for genius instead of the intellectual slop it really was.

Robert J. Abalos, Esq.