Gloomy forecast ahead

From Eric Dondero:

CNBC interviewed Alan Greenspan and reported "The Federal Reserve's massive stimulus program had little impact on the U.S. economy besides weakening the dollar and helping U.S. exports, Greenspan told CNBC Thursday."

The former Fed Chairman was quoted:

"There is no evidence that huge inflow of money into the system basically worked," Greenspan said in a live interview.

"It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion," he said. "Aside from that, I am ill-aware of anything that really worked. Not only QE2 but QE1."

Perhaps even more stunningly, Greenspan predicted that a Greek default appears to be "likely," and that it would have a major impact on the US economy.

Editor's comment - "Helping U.S. exports," and "weakening of the dollar," enough to make a Pat Buchananite have a massive heart attack.

Photo credit - TheExaminer