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

Greenspan: Recovery in 3Q, but unemployment still rising

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/POLITICS/10/04/u.s.economy/art.greenspan.gi.jpg caption="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. best sellers list

    Geenspan?Its nice to hear from one of the biggest crooks on the planet,thanks for nothing .

    October 4, 2009 10:33 am at 10:33 am |
  2. ICARE

    We need to grow jobs and invest in new growth besides other factors. This will fuel job growth!!! I believe in the pie 0.001 % goes to investing in new green jobs and new businesses and 60% goes to tax cuts and 20% goes to pet projects. How the hell is the economy supposed to create jobs when you threw it in a black hole?

    We need to heavily invest in new job growth. Stop playing games. The first groups we need to listen to is Nobel Prize economist winners, NOT the STINKY corrupted groups in Washington.

    October 4, 2009 10:44 am at 10:44 am |
  3. victim of republican greed

    Greenspan predicts the economy will grow by more than 3% in the third quarter. Here comes the wingnut express to trash him. After all, who knows more about how to get us into a mess than a wingnut? They are clueless at fixing the situation, though.

    October 4, 2009 10:45 am at 10:45 am |
  4. ICARE

    Let's lose the politics. Right now, we need men with brains and men with Nobel prize winning decorated veterans in the economic field.

    So far, I give, especially, the ELEPHANTS a F- for asking for the same thing, TAX CUTS.

    And I give the Obie Admin a C for not dumping boatloads of money on research and innovations that will fuel job growth....

    October 4, 2009 10:49 am at 10:49 am |
  5. ICARE

    We need to INVEST NOW to grow in the future....are we that stupid? Where did all the men with brains go? Nobel prize winners PLEASE help us...

    October 4, 2009 10:50 am at 10:50 am |
  6. New Age Democrat

    IF the stimulus package was actually designed to stimulate jobs, then I might agree with Mr Greenspan. However, the "Spendulous Package" was filled with pork, slowly roasted over Democratic Greed. The current unemployment rate is completely unacceptable, much less climbing over 10%. Obama's campaign promises it seems were only designed to get him elected. So far, I've seen very little to be encouraged. Many of us thought we casted our votes for change and we hoped for the best. I'm afraid, we got inexperience, greed, and a continued lust for power. If I could take back my vote, I would. Unfortunately, I can only learn from my mistake and correct it in the future.

    October 4, 2009 10:51 am at 10:51 am |
  7. Georgette

    He is so hot!!!!!

    October 4, 2009 10:55 am at 10:55 am |
  8. Steve B (California)

    The entire unemployment picture is actually much worse than the 9.8%.
    Ask any self employed or freelance worker who can't find work.
    This number must be much higher.

    October 4, 2009 10:55 am at 10:55 am |
  9. ICARE

    To New Age Democrat

    I forgive Obie. It's his first year. Next year, I expect him to be fully operate at 100%.

    October 4, 2009 10:56 am at 10:56 am |
  10. mark

    All the whiners here need to take a simple econ 101 class, yeah the ones with theories developed by nobel prize winners...and by the way the republicans are the party that ascribe to real nobel prize winning economic theory...

    October 4, 2009 10:56 am at 10:56 am |
  11. Scott Whitehill

    Ok, I'm a moron... unemployment skyrockets, but the economy will recover. Hmmmm.. Guess we can all quit or stop looking for jobs, if this is the case, wow!!!! (Greenspan should be shot in the rump!!)

    October 4, 2009 10:56 am at 10:56 am |
  12. ICARE

    Obie needs to go take a class on economic 101 or sit down for hours with Nobel prize winner economists. These are the brains he needs...

    October 4, 2009 10:57 am at 10:57 am |
  13. ICARE

    God bless America and God help us. I think I need to pray for this President and for the country.

    October 4, 2009 10:58 am at 10:58 am |
  14. Scott, Tucson

    So hows that Hope and Change working out for you? The Dem's solution is to dig deeper into our wallets though ever higher taxes to fix their mess.

    October 4, 2009 10:59 am at 10:59 am |
  15. tate

    Why do we care what the person who helped start this has to say. He has been wrong more than right. Outside of sueing people or community agitator the whiner in cheif is way over his head. It is nice to see this clown keep getting his buck teeth kicked in.

    October 4, 2009 11:00 am at 11:00 am |
  16. Scott Whitehill

    .... AND, for the last 2 years, we shouldn't have been //trying// to create new jobs... last time I looked, we haven't!! ... instead, we should have been PROTECTING the jobs we HAD! .. but it all boils down to imports, CHINESE imports to be exact. When our own people stop building things in America because we're importing them, THAT's when all our problems start to snowball!! ... can't anybody else see this??? jeeeeez.

    October 4, 2009 11:00 am at 11:00 am |
  17. ICARE

    We just need people that care about America and we'll be fine. So far it's not the people with ideas but it's the face of greed again.

    October 4, 2009 11:02 am at 11:02 am |
  18. ICARE

    All I can say is what the economists said 'be bold' dont be afraid... and add a little bit of wisdom to know what to invest in....

    October 4, 2009 11:02 am at 11:02 am |
  19. coffic

    Regarding job losses, the fact that the numbers haven't dropped drastically is terribly frightening. So many have lost their jobs and now many companies are down to the absolute minimum. The next step is closing their doors. Obama said he is going to focus on creating jobs–how about keeping jobs and getting businesses back to where they can rehire those they have lost? I'm not an economist, but it just doesn't make sense to me that "unemployment is a lagging indicator in an economic recovery". If people are working, the economy should recover. How can an economy recover while unemployment is rising?

    October 4, 2009 11:09 am at 11:09 am |
  20. JD

    Until unemployment starts going DOWN (like 0bama's poll numbers), any claims of a recovery are just smoke, mirrors and LIES.

    October 4, 2009 11:15 am at 11:15 am |
  21. tjampel

    A little bit under 40% of the stimulus package goes directly to hiring people. That's about 300 Billion. Most of that hasn't been spent yet. What was spent went mainly to keeping state employees on the jobs and to build roads and other construction, which wouldn't have been done otherwise.. Without the stimulus many states, that are already tanking, would have been even closer to going belly-up. Many teachers and policemen are able to stay on the job because of it. Much needed roads and bridges are able to be built only because of it.

    Yes, the impact is invisible because the economy is so bad right now. If there were no stimulus the economy would be even worse and unemployment would be a full point higher. Having people out there working is necessary to fuel the recovery because working people buy things and that keeps the people who make those things that people buy working, etc. Every study and prediction by those "Nobel-prize-winning" economists show clearly how money spent directly on job creation yield returns of 140% or so because these working people, through buying goods and services, keep other people employed and feed the economy, allowing others to keep jobs that would otherwise be eliminated, preventing plants from closing, and allowing some businesses to hire new workers.

    Had we followed the Republican plan of simply cutting taxes (what got our debt up to a trillion in the first place) mainly for the rich, of course, there would be far less stimulation of the economy. In fact Obama and Congress were criticized by some of those award-winning economists for doing far too little job creation; they wanted the stimulus bill to have a much higher percentage of direct job creation and less tax credits and other stuff.

    October 4, 2009 11:19 am at 11:19 am |
  22. mark

    Did obama not claim that his spendulus package was going to cap unemployment at 8.0% now hitting 10.0%, oops major miscalculation there. assuming a population of 304,059,724 as of Jul 2008, his margin of error was ~6 million jobs – hope/error you can believe in...

    October 4, 2009 11:20 am at 11:20 am |
  23. Ben

    ICARE – Krugman has a Nobel prize, and he wrote an op-ed stating that no economist saw the crash coming. What about Peter Schiff, Ron Paul, Nouriel Roubini, Marc Faber, Gerald Celente, etc. Nobel prizes don't mean much when it comes to economics I guess.

    October 4, 2009 11:28 am at 11:28 am |
  24. Bill in VT

    What is the fascination with "Nobel prize winning economists"? They win those prizes for writing papers and theorems. I happen to think common sense is enough to get things moving again.

    October 4, 2009 11:29 am at 11:29 am |
  25. EcoAZ

    "Reublicans are to blame, they don't want success for the public, just themselves. Thay want failure at any cost."

    I cannot believe asinine comments like that are still circulation. This is a national problem that won't be helped by constant hate spewing from left wing zealots.

    Hope at least some of these idiots grow up and rejoin The American People soon.

    October 4, 2009 11:29 am at 11:29 am |
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