rant · moment 7 of 11
Greenspan, Interest Rates, and the Coming Recession
from Bavarian Cream Pie · #127
Audio-only archive episode — no video to seek.
7 minTim and Ray get into a detailed economic discussion about the Fed raising interest rates, historically low borrowing costs, the 2000 tech bubble, the 2008 housing crisis, and signs pointing to a coming recession under Trump.
- 38:33Greenspan predicted the economy would get bad in 2019 with a recession coming.
- 39:00Trump kept the economic scam going for another year with his tax cut.
- 39:48Interest rates need to be raised to prevent the economy from overheating and causing price inflation.
- 40:53Low interest rates encourage unhealthy habits like cheap credit and borrowing while discouraging saving.
- 42:10Greenspan slashed rates to near zero after the tech bubble burst in 2000, which helped lead to the housing crisis.
- 42:41A trade war with China combined with political instability makes a recession likely.
- 43:20The economy is built on an unsound system based on rampant military spending and artificially cheap lending.
- 43:44Wall Street benefits from securitization that makes money cheaper and disposable, allowing people to borrow for houses and cars.
- 44:49Raising rates now could trigger asset sales as the entire system is an unstable house of cards.
- 45:27Authorities appear to be pursuing Trump's pre-election business dealings separately from the Mueller investigation.
ChinaWall StreetGreenspanDonald TrumpMueller