Greenspan: Fix System Before Stimulus

By EAMON JAVERS | Politico

NEW YORK – The famously inscrutable Alan Greenspan used some uncharacteristically candid language to describe the dire plight of the American economy Tuesday night.

“Since the collapse of Lehman Brothers in September, we have been exposed to the most rapid and unremitting set of gloomy statistics that I have ever seen,” the former Fed chairman said at the 401st meeting of the Economic Club of New York.

And later, during a brief question-and-answer session at the New York Hilton, he branded the current economic morass a “once-in-a-century type event.”

As for the current debate in Washington over spending versus tax cuts, Greenspan said he has “little to add” about the question of government stimulus spending, but he asserted the government must fix the financial system as a whole before delivering stimulus spending and tax cuts …

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