Greenspan Says U.S. Near Recession
Former Federal Reserve Bank chairman Alan Greenspan told a South African audience the U.S. had a 50-50 shot at going into a recession:
Asked if the U.S. economy was in recession, Greenspan said: “We are on the brink.”
A quick recovery was unlikely, he said via video link to a conference in Johannesburg. “A rebound at this stage is not something I think is in the immediate outlook,” he said.
“There are still very considerable structural problems remaining in the financial system. They will remain for a while. It’s going to be very difficult. There are a lot of unexpected adverse events out in front of us,” Greenspan said.
The only reason this is news is because it’s Greenspan. As we’ve seen over the last few months the economy has been weak. Calling it a recession or not isn’t that important. People are feeling the pinch. The housing bubble along with the resulting credit crunch and high energy prices have gotten consumers and businesses skiddish about taking risks. Reduced consumption and investment are the results.
“Economy on Brink of Recession, Greenspan Says”
