|
|
|
Economy on brink of recession, Greenspan says Reuters JOHANNESBURG (Reuters) - Former Federal Reserve Chairman Alan Greenspan warned on Tuesday the U.S. economy was on the brink of a recession, with the chances of that happening at more than 50 percent. The U.S. economy has been hit by a credit crisis which began in the sub-prime mortgage market, prompting a series of interest rate cuts to help boost the economy. But price pressures are growing, making more rate cuts unlikely. Asked if the U.S. economy was in recession, Greenspan said: "We are on the brink."
(Article continues below) 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. Greenspan said he did not believe arguments that the housing problems in the U.S. were due to interest rates being too low during his tenure. "As far as I'm concerned, the data do not support it (that argument). The housing bubble is clearly an international phenomenon." On South Africa, Greenspan said the country's Reserve Bank had been right to raise interest rates in the face of accelerating inflation.
|
|
|
| PRISON
PLANET.com Copyright © 2002-2008 Alex Jones
All rights reserved.
|
Yahoo! MyWeb
