Stock Preacher

Former Federal Reserve Chairman Alan Greenspan said yesterday in NYC that he is more worried about the increasing US debt than the weakening US$. In a speech to the Council on Foreign Relations in New York, Mr. Greenspan said he is “not overly concerned” about the most recent decline in the dollar, which has hit a 14-month low against the Euro and other major currencies. “Remember, the dollar surged when the crisis began as we still conceive dollar as safe heaven. We are now back to the levels just prior to the crisis,” he said. Also, Mr. Greenspan expressed concern about the long-term costs to the United States from the increasing national debt, which according to him is the “most worrisome aspect of the economic agenda in the United States.” Read more

Popularity: unranked [?]

Former US Federal Reserve Chairman Alan Greenspan recommends graduated capital requirements for banks to cut back their size.

“New regulatory challenges arise because of the recently proven fact that some financial institutions have become too big to fail as their failure would raise systemic concerns,” he writes in Friday’s Financial Times.”The solution is to have graduated regulatory capital requirements to discourage them from becoming too big and to offset their competitive advantage.”

Greenspan is widely blamed for allowing financial firms to outgrow government oversight and in October last year he acknowledged that he was partly wrong to resist the regulation of some securities. He said in Friday’s FT that while regulators could enforce collateral requirements, they could not fully forecast if, for example, sub-prime mortgages would turn toxic.

________________________________________________
Follow us on Twitter: http://www.Twitter.com/StockPreacher

Popularity: 3% [?]