Fed Policies

* After his meeting with Federal Reserve Board Chairman Alan Greenspan, President-elect George W. Bush was quoted as saying, “We had a very strong discussion about my confidence in his abilities” (“Energy, Economy Top Bush’s List During D.C. Visit,” Dec. 19). I certainly would hope so. Greenspan’s monetary policies, along with the fiscal policies of the Clinton administration, have resulted in the greatest economic boom in U.S. history. And perhaps Dubya will remember, too, that his daddy’s and Reagan’s “trickle down,” supply-side theories resulted in the largest debt and deficit. Listen to Al, George!

DAN PELLOW

Los Angeles

*

Before Kevin Phillips (Opinion, Dec. 17) anoints Greenspan as the most powerful person in Washington, he should consider the following. As perpetrator of the Greenspan recession of 2000-2002, Greenspan has: raised interest rates repeatedly when there was no real indication of increased inflation; failed to anticipate or react to the combined effect of increased interest rates and drastically higher energy costs that have slammed the brakes on the economy; been very slow to recognize the profound effect that technology has had on productivity; and failed to understand how the economy can sustain strong growth with low unemployment.

By greatly reducing the “wealth effect” of which he is so fearful, he has squeezed the consumer and also jeopardized the anticipated budget surpluses, which depend greatly on future tax revenues from stock market profits held in IRAs and brokerage accounts. These surpluses were to have been used to pay down the national debt, shore up Social Security and Medicare and provide tax relief. I would give far greater credit to the American technology corporation and to the technology worker than to Greenspan for the prosperity we have enjoyed for the last 10 years.

DON W. HILGENDORF

Irvine

*

Bill Clinton started his presidency with a deficit of more than $250 billion, thanks to George W’s dad’s financial savvy. President-elect Bush will be starting his new career with a surplus of some $250 billion. Paying down the national debt and keeping interest rates low are the most important, prudent financial decisions you can make. Don’t tease middle America with a few extra bucks from a “huge tax savings” and then have rising home interest rates eat up any tax relief. A better plan would provide moderate tax relief, with future efforts directed at keeping interest rates low.

ANDREW R. EINHORN

Huntington Beach