Greenspan just said that the current credit crunch is “by far the greatest financial crisis, globally, ever” – including the 1930s Great Depression.

Bloomberg notes:

Greenspan said that while the economy was in worse shape in the Great Depression, the recent financial crisis was potentially more harmful than that in the 1930s because “never had short-term credit literally withdrawn.”

Greenspan also said “fiscal affairs are threatening this outlook” for recovery.

As I pointed out last May:

The following experts have said that the economic crisis could be worse than the Great Depression:

• Fed Chairman Ben Bernanke

• Economics professors Barry Eichengreen and and Kevin H. O’Rourke(updated here)

• Investment advisor, risk expert and “Black Swan” author Nassim Nicholas Taleb

• Former Fed Chairman Paul Volcker

• Nobel prize winning economist Joseph Stiglitz

• Economics scholar and former Federal Reserve Governor Frederic Mishkin

• Well-known PhD economist Marc Faber

• Former Goldman Sachs chairman John Whitehead

• Morgan Stanley’s UK equity strategist Graham Secker

• Former chief credit officer at Fannie Mae Edward J. Pinto

• Billionaire investor George Sorors

• Senior British minister Ed Balls

Unfortunately, virtually everything the American government has done since the crisis started has been counterproductive. See this, this, this, this, this, this, this,this, this, this and this.

The same is true of most other governments.

In the understatement of the day, Greenspan also called the recovery “extremely unbalanced,” driven largely by high earners benefiting from recovering stock markets and large corporations.

Source: Washington’s Blog

Other stories at We Are Change Colorado Springs

Former Mexican foreign minister calls for ‘North American union’, unified currency

Obama Administration Orders World Bank To Keep Third World In Poverty

Bob Chapman: We Are In A Depression, Not A Recovery

This entry was posted on Thursday, February 25th, 2010 at 8:15 am and is filed under Economy, Federal Reserve. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.