Greenspan has an Oh Shit! moment

This interesting little piece, via Mover Mike, from the Times Online.

IRRITATED American officials yesterday sought to play down claims that Alan Greenspan had said Washington had “lost control” of its budget deficit.
Thierry Breton, France’s Finance Minister, speaking to reporters in Washington, made the claim after a closed-door meeting with Mr Greenspan, the Federal Reserve Chairman, and John Snow, the US Treasury Secretary.

“ ‘We have lost control’, that was his expression,” M Breton said as he outlined the Fed Chairman’s private comments.

Of course in Washington they were trying to spin it away.

A senior US official suggested the French minister must have misunderstood Mr Greenspan’s remarks. “Things can get lost in translation,” the official said.

The US Treasury also rejected any suggestion that the deficit was out of control. “This administration is absolutely committed to the President’s goal of halving the deficit as a percentage of GDP by 2009 and we have every expectation of meeting that goal,” a spokesman said.

Right, and I have some recently cleared land in Louisiana to sell you.

I think Mike calls it about right.

I suspect that Greenspan wants to avoid all blame for any dire economic consequences after he leaves office in January, 2006.

Greenspan is smart enough to know that the shit is about ready to hit the fan and that's not the kind of legacy he had in mind.