Mind Over Market

Part One: Part Two: CNBC Squawk Box hosts Joe Kernen, Becky Quick and Carl Quintanilla interviewed Alan Greenspan June 3 from the Department of Labor in Washington, D.C., where they had traveled to broadcast the show remotely. In his comments, Greenspan says that one of the missing parts of the economic recovery is the construction sector, missing partly because of the weak housing sector. According to research by his firm, Greenspan said, If the production of longer-lived assets had recovered as it has in the past, unemployment would be at 6 percent. Greenspan also supports raising income tax rates to the Clinton era levels, if necessary, for a budget agreement that reduces the deficit and debt outlook. Greenspan also does not believe that there will be a crisis after August 2, as Secretary Timothy Geithner has suggested, if the debt ceiling is not raised. Treasury is high likely to continue paying interest on the nation's debt service. The problem is that ...

American households have dramatically turned away from years of rising spending and borrowing to embrace a new ethic of thrift and saving. This change of heart appears likely to continue for many years, which suggests the United States will have a weaker economic recovery than has been seen after other post-war recessions. While painful in the short term, this return of thrift will be beneficial in the long run. By Robert Stowe England June 14, 2009 [ Note: The following remarks were made at the 30th annual conference of American Independent Writers at George Washington University in Washington, D.C. on June 13.] Whatever history’s ultimate conclusion about the current economic downturn, it has already earned its place in the record books on several accounts. We have the highest unemployment rate in 25 years at 9.4 percent. We have lost 5.4 million jobs. Housing prices have declined the most since the Great Depression. More national debt has already been created during this downturn th...