Says Alan Greenspan, the “recovery” at the moment is benefitting those who never really needed it in the first place:

Former Federal Reserve Chairman Alan Greenspan said on Tuesday the U.S. economic recovery was “extremely unbalanced,” driven largely by high earners benefiting from recovering stock markets and large corporations.

Small businesses and the jobless are still suffering from the aftermath of a credit crunch that was “by far the greatest financial crisis, globally, ever” — including the 1930s Great Depression, said Greenspan in an address to a Credit Union National Association conference.

After a year of “stimuli”, the “recovery” seems to be focused on big businesses and government workers:

“It’s really an extraordinarily unbalanced system because we’re dealing with small businesses who are doing badly, small banks in trouble, and of course there is an extraordinarily large proportion of the unemployed in this country who have been out of work for more than six months and many more than a year,” said Greenspan, who headed the Fed from 1987 to 2006.

With both housing starts and auto sales “dead in the water,” he said he thought it would be difficult to make the case that the economy is poised for a strong rebound.

At best.

This entry was posted by by Mitch Berg on Wednesday, February 24th, 2010 at 6:04 am and is filed under Business, The Economy and The Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.