October 4th, 2009
10:00 AM ET
5 years ago

Greenspan: Recovery in 3Q, but unemployment still rising

Former Fed Chairman Alan Greenspan, shown here in 2008, says temporary actions can help the jobless.
Former Fed Chairman Alan Greenspan, shown here in 2008, says temporary actions can help the jobless.

WASHINGTON (CNN) - The U.S. economy will grow more than expected in the third quarter, but unemployment also will continue to increase and "penetrate" the 10 percent barrier, former Federal Reserve Chairman Alan Greenspan said Sunday.

Greenspan told the ABC program "This Week" that he expected 3 percent growth in the third quarter, up from the 2.5 percent he previously predicted. However, he said a "pretty awful" September employment report released Friday showed the jobless rate continued to climb.

A slowing or halt in job losses is different than reversing the rise in unemployment, Greenspan noted, adding that the nation's unemployment rate - currently 9.8 percent - is "going to penetrate the 10 percent barrier before heading down."

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Filed under: Alan Greenspan • Economy
soundoff (60 Responses)
  1. g

    do all republicans have jobs and healthcare just wondering

    October 4, 2009 01:40 pm at 1:40 pm |
  2. Enough

    How is it recovery if unemployment is still rising??? Obama wants to extend unemployment benefits, which sounds nice, but the burden to pay for that will be placed on the employers.............as a small business owner, this is a job killer. We can't afford to hire people when the government keeps placing more and more burdens upon us. Obama has no clue when it comes to business............how could he, he has ZERO business experience and only understands UNIONS.

    October 4, 2009 01:41 pm at 1:41 pm |
  3. oldtimer

    Greenspan should just keep his mouth shut. Much of the problem we face today started with this idiot. Just shut up and go away.

    October 4, 2009 01:56 pm at 1:56 pm |
  4. Mike in MN

    If the economy is growing again, now would be a great time for all the wealthy left to pool their money and start up a bunch of corporations that would not be greedy.
    The left makes it quite clear the the right are uneducated, stupid, greedy profit loving evil Republicans. The left hates corporate greed and apparantly all corporations are greedy and under pay employees, over charge customers and horde wealth. So they must be all owned and run by Republicans.
    So where are the liberal run corporations that would be run by better educated, smart, fair liberals? There is no law that says liberals can't own and operate corporations. They could own and operate health insurance companies that charge fair premiums, cover pre-existing conditons and provide unlimited benifits will charging customers less. Health insurance companies like these would soon put the greedy Republican ones out of business. You would not need a public option to provide competition or health care reform at all.
    And why stop there. The left could create greed free banks and factories that don't close shop and send jobs off shore. Thinks of the millions they could put back to work with better wages and benifits than the greedy Republicans pay. I'm sure the better educated and smarter liberals can figure out ways to make US based firms thrive against foreign competitiors that pay lower taxes, employee cheaper labor and spend less on government regulations for worker saftey and the environment.
    Why has the left not already done this? Are there no business minded people among them? Maybe they are not as educated or smart as they claim. Maybe they have no clue how to run a business and only care about government. Maybe they believe all answers lie in government. Maybe it is true that liberals would rather have the government do for them what they should do for themselves. Maybe it is easier for the left to have government take wealth from those who earned it and give it to those who did not.

    October 4, 2009 02:03 pm at 2:03 pm |
  5. No Hillary = No Obama

    When this guy talks I want to put my hands over my ears and say "I can't hear you" – had we done that when he was heading the Federal Reserve people would still have years of deposits still sitting in their retirement accounts.

    October 4, 2009 02:26 pm at 2:26 pm |
  6. Scott

    Greenspan is no genius – Obama's people said this spring that unemployment would reach 10% before turning back down. That was several months ago – and Greenspan is just bringing it up now (sounds like Republican politics more than economic analysis).

    And these people who are saying 8 and 9 % were what Obama expected – they are dead wrong. The initial figures Obama was given when he was coming into office were not true (is it a suprise Bush's numbers were wrong / or even a lie?). Once the true economic and employment numbers were figured out (after Bush's people left) – Obama was forced to revise his initial estimates – and DID acknowledge long ago that we would top 10%.

    Too many right wing people (many who caused the problems in the first place) – try to shift the blame from themselves to the people who are actually fixing their problem today. Cowardly and despicable.

    October 4, 2009 02:31 pm at 2:31 pm |
  7. CHIPS

    It,s amazing to me that when in office no everybody had any solutions for Bush and he wouldn't take any. But want to give Obama all the solutions.

    Sit back and watch the new president work and shut-up. Nobody can be any worst then Bush.

    October 4, 2009 02:32 pm at 2:32 pm |
  8. S M R

    You want OUR Country to fully recover? If so DON'T VOTE REPUBLICAN.

    October 4, 2009 02:32 pm at 2:32 pm |
  9. CHIPS

    It,s amazing to me that when in office nobody had any solutions for Bush and he wouldn't take any. But want to give Obama all the solutions.

    Sit back and watch the new president work and shut-up. Nobody can be any worst then Bush.

    October 4, 2009 02:37 pm at 2:37 pm |
  10. Charlie

    End The FED! Read Ron Paul's new book and learn how the Fereral Reserve bank a private bank has never been aduited, how the American peopl have no idea where they spend our tax money or with whom.

    October 4, 2009 02:51 pm at 2:51 pm |
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