Government Stimulus Hasn’t Worked

I’m not the only one who keeps saying that pouring more money into the system is not helping us recover from the current recession.

You may have seen this story on CNBC.com, where Federal Reserve Governor Alan Greenspan talks about his take on the government’s response to the financial crisis.

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

According to Greenspan, the $2 trillion in quantative easing over the past two years had done little to loosen credit and boost the economy.

"While it has reduced the value of the dollar in the world markets, making it easier to export our products overseas, it hasn’t done much to speed the recovery. I am ill-aware of anything that really worked. Not only QE2 but QE1."

Of course, not everyone agrees. This video was posted on the HousingWire site last week and features QE advocate Paul Krugman making his case.

What do you think?