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US Economy Called Worst Since WWII

Published:

NEW YORK (March 17) -- Today's economic condition could likely be seen as "the most wrenching since the end of the second world war," wrote former Federal Reserve chairman Alan Greenspan in the Financial Times on Monday.

The U.S. financial crisis won't end until housing prices stabilize, but that won't happen for months, wrote Greenspan.

The models used by the finance industry to determine risk and measure economic strength are too simple to fully account for human responses, he said. "We cannot hope to anticipate the specifics of future crises with any degree of confidence," he wrote.

However, Greenspan said that he hoped the fallout would not take away the finance industry's ability to regulate itself. Market flexibility and free competition are the most reliable safeguards against economic trouble, he said; the system which is supposed to guard against unanticipated losses will need to be overhauled.

CNN MONEY
Entry #1,312

Comments

1.
JAP69Comment by JAP69 - March 17, 2008, 9:03 pm
The way things are going we will need big sacks to carry money around for what we need today.
2.
Comment by pacattack05 - March 17, 2008, 11:46 pm
The Euro is equvalent to about 1.66 to the dollar.

Everyday I wake up to higher barrel prices and higher food prices, on top of the weakened dollar to begin with.



This is just the beginning.
3.
justxploringComment by justxploring - March 18, 2008, 1:39 am
In my heart, I've always believed the government has a lot to do with the current mortgage crisis and are blaming it the mortgage industry. I remember when Greenspan promoted the 1% option ARM and the interest only mortgages. People in Washington kept saying how good the low interest ARMs were because they allowed young couples to buy homes they otherwise couldn't afford.
4.
time*treatComment by time*treat - March 18, 2008, 2:32 am
They mocked those who dared to ask "What happens when rates rise?". Now those young couples (and some old ones too) cannot afford to *keep* those homes. They will now lose the home, *plus* the money they have paid in principle.
The eight words an educated person dreads most: "I'm from the gov't. I'm here to help."
5.
LOTTOMIKEComment by LOTTOMIKE - March 18, 2008, 3:21 am
happening to my dad now with his house.i have always rented apartments and sorted of stayed within my means so when i was broke it was just little things i was doing without after i paid my rent,utilities,phone,etc. more of a wants than needs type of thing.back a few years ago he kept on me about getting a house when he got his and i resisted.now he is talking about renting an apartment where i am,ironic.i have never ever wanted a financial albatross around my neck.i buy my vehicles instead of doing tote the notes and i don't rent anything besides the place i stay.
6.
LOTTOMIKEComment by LOTTOMIKE - March 18, 2008, 3:24 am
i'm finally starting to get approved for little credit cards around 200 or 300.i got one and cut a couple of the rest of the offers up.i just want a card in case of an emergency.thats my one bad area is i have no credit built up even though i have never been late on my rent,utilities or phone.
7.
jarasanComment by jarasan - March 18, 2008, 10:40 am
Wow! The end is near! God help us all. Why even bother anymore. Let's just give up and throw in the towel. We'll never recover. Pessimism makes me nauseous, I can't go on, I gotta puke.

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