More stimulus is needed now | AspenTimes.com

More stimulus is needed now

Dear Editor:

As I have said, the meltdown, starting in 2007, was caused by the Federal Reserve Board raising interest rates 525 percent from 2001 to 2005. Alan Greenspan was the Fed chairman overseeing the train wreck. He and the other appointed members of the Reserve Board knew that millions of mortgages and millions of business loans would crash and burn. How stupid, hateful and mean (you supply more adjectives).

CNBC just had interviewed Greenspan about the fiscal cliff. His answer was, “The Fed is not as important as you would think.” Really, Alan? The current chairman, Ben Bernanke, would not agree. Otherwise, why would the Fed rate be one-quarter of a percent? Why is the Fed buying toxic bonds and mortgage bundles to give bankers liquidity?

Look, fans, this is not rocket science. It’s fundamental: We need more and more stimulus. That’s how Franklin Roosevelt got our economy slowly recovering. Greenspan says it is “not needed.” Then he spoke “gobbledygook” theories that made no sense at all.

This is the same expert who said recently about the fiscal cliff, “Bring it on!”

You’ve got to spend money to make money. Since business doesn’t want to, the federal government must. A series of “stimulus” bills is needed. Now. Once we recover, we can address the debt.

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Richard C. Goodwin

Snowmass Village