"The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War," Alan Greenspan said in a Financial Times commentary.
"It will end eventually when home prices stabilise and with them the value of equity in homes supporting troubled mortgage securities," he said, referring to the meltdown in the US subprime home loan market and subsequent massive losses for the banks holding the debt instruments.
"The crisis will leave many casualties," he said, his remarks coming after Bear Stearns, the fifth largest US investment house collapsed Friday and was taken over by JPMorgan Chase for a fraction of its value of only a week ago.
So.... what happened? Why haven’t Bush’s tax cuts made everything wonderful for our economy? How come after eight years with Bush at the reins we are heading towards the most wrenching financial crisis since WWII?
Not his fault, you say? 9/11 and all that?
There could not be clearer evidence that Republican economic policies have FAILED miserably. The prospect of electing John McCain to carry on another four years of these same failed economic policies is frightening.