Goldman Sachs ex CEO sees slump worse than Depression

[Pepsi]

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Whitehead sees slump worse than Depression


The economy faces a slump deeper than the Great Depression and a growing deficit threatens the credit of the United States itself, former Goldman Sachs chairman John Whitehead ...

"I think it would be worse than the depression," Whitehead said. "We're talking about reducing the credit of the United States of America, which is the backbone of the economic system. ... I see nothing but large increases in the deficit, all of which are serving to decrease the credit standing of America. ... I just want to get people thinking about this, and to realize this is a road to disaster. I've always been a positive person and optimistic, but I don't see a solution here."

Whitehead warned the country's financial strength is at risk due to the sweeping demand for tax relief and a long list of major government spending plans.

"I see nothing but large increases in the deficit, all of which are serving to decrease the credit standing of America," said Whitehead, who served as chairman of the Lower Manhattan Development Corp after the World Trade Center was destroyed during the September 11, 2001 attacks.

Whitehead, who helped make Goldman a top-tier Wall Street firm and led its international expansion, left in 1984 to become a deputy secretary of state under Ronald Reagan.

http://www.reuters.com/article/Finance08/idUSTRE4AB7HT20081112

[lucy]

I expect Mr. Whitehead will be the first one to call a press conference discussing the importance of transparency in revealing just who is getting money from this bailout for Goldman and others...

[lucy]

On the other hand, there might be a good reason why there is such a lack of transparency in where the bailout money has gone....

http://endthebailouts.com/2008/11/07/86-of-bailout-money-used-for-executive-bonuses/