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Incompetence all around

Dear Editor:

Will you “Tea Party” neo-cons and the other 48 million Americans (at least, I hope you are) who voted against our creative and hardworking President Obama stop bitching about the lack of a quick financial and job recovery?

It took Bush, his economic genius advisors, treasurer (from Goldman Sachs) watching Chairman Greenspan (Federal Reserve Board ((FRB))) raise interest rates 525 percent in four years from 2001 to 2005, that neglect tipped over an economy riddled with greed. I call these people the “Economic Wrecking Balls,” EWB.

Not only was there neglect, but a lack of enforcing regulations and they removed some. Now how about Greenspan, a Nobel Laureate. He said in the fall of ’09 before the Banking Committee “I didn’t see it coming.” If I was in that room I would have jumped up and shouted “you were paid to see it coming and worse than that, you caused it by raising interest rates 525 percent from ’01 to ’05!”

Greenspan, his fellow FRB members, and 75 Ph.D. economists at the Fed knew all about the millions of adjustable rate mortgages, some approved at 3 percent interest when the market rate was 6.5 percent. They raised rates on mortgages from 5.5 percent to 8.5 percent in a few years.

The FRB did the same to millions of business loans, when these loans, even at “prime rate,” were doubled from ’01 to ’05. Many companies, to stay in business, laid off millions of employees – more 4 million, causing more foreclosures.

I sounded the “alarm” with letters to Bush and Congress about a Category 10 “Perfect Economic Storm” in 2005, to no avail.

Since there is no oversight of the FRB or their elected members, at the very least, Congress should pass a law that the Fed can only raise rates with 51 percent congressional approval. Let them make their case before the public and elected officials and ask “what’s wrong with low interest rates?” It would help investments for our seniors.

Richard Goodwin

Snowmass Village


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