More than 50 pc chance of US recession: Greenspan
There is more than a 50% chance the US could go into recession, former Fed Reserve chairman Alan Greenspan has said.
By Agencies |
MADRID: There is more than a 50 per cent chance the United States could go into recession, former Federal Reserve chairman Alan Greenspan said in an interview published on Sunday.
However, the US has not yet entered recessionary state marked by sharp falls in orders, strong rises in unemployment and intensive weakening of the economy, he said. "We would have to see signs of this intensification: there are some, but not many yet," he said.
"Therefore ... I would not describe the situation we are in as a recession, although the chances that we'll have one are more than 50 per cent." A sharp downturn in the US housing market has led to a full-blown credit crisis that has reverberated throughout the US financial system.
The economy has become increasingly important in the US presidential campaign, topping the list of voters' concerns heading into the November election. Greenspan endorsed the Republican presidential candidate, John McCain, in the interview. "I'm Republican and I support John McCain, who I know very well and who I respect a lot," he said.
However, the US has not yet entered recessionary state marked by sharp falls in orders, strong rises in unemployment and intensive weakening of the economy, he said. "We would have to see signs of this intensification: there are some, but not many yet," he said.
"Therefore ... I would not describe the situation we are in as a recession, although the chances that we'll have one are more than 50 per cent." A sharp downturn in the US housing market has led to a full-blown credit crisis that has reverberated throughout the US financial system.
The economy has become increasingly important in the US presidential campaign, topping the list of voters' concerns heading into the November election. Greenspan endorsed the Republican presidential candidate, John McCain, in the interview. "I'm Republican and I support John McCain, who I know very well and who I respect a lot," he said.
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