US economy is on the verge of its 1st recession in 6 years: Greenspan
Former Federal Reserve chairman Alan Greenspan said the US economy is on the verge of its first recession in six years as falling home values hurt consumer spending.
By Bloomberg |
SAN FRANCISCO: Former Federal Reserve chairman Alan Greenspan said the US economy is on the verge of its first recession in six years as falling home values hurt consumer spending. ���We are clearly on the edge,��� Greenspan told a group of energy-industry executives Thursday at the Cambridge Energy Research Associates��� 27th annual CERAWeek conference in Houston.
He reiterated comments from last month that the odds of an economic contraction are ���50% or better.��� Greenspan���s view has evolved from a year ago, when he saw a one-in-three chance of a recession, citing slowing profit growth and be-coming one of the first economists to warn of the risk.
Now, Wall Street firms including Merrill Lynch and Goldman Sachs are fore-casting a contraction in the aftermath of the worst housing downturn in a quarter century. Bernanke acknowledged ���downside��� risks to the expansion Thursday, while telling lawmakers he expects growth to pick up later this year. He reiterated the central bank is prepared to take ���timely��� action to aid the economy as needed.
He reiterated comments from last month that the odds of an economic contraction are ���50% or better.��� Greenspan���s view has evolved from a year ago, when he saw a one-in-three chance of a recession, citing slowing profit growth and be-coming one of the first economists to warn of the risk.
Now, Wall Street firms including Merrill Lynch and Goldman Sachs are fore-casting a contraction in the aftermath of the worst housing downturn in a quarter century. Bernanke acknowledged ���downside��� risks to the expansion Thursday, while telling lawmakers he expects growth to pick up later this year. He reiterated the central bank is prepared to take ���timely��� action to aid the economy as needed.
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