Greenspan Warns of Likely U.S. Recession

[Quixote1818]

Alan Greenspan Warns That U.S. Economy May Slip Into Recession by End of Year

HONG KONG (AP) -- Former U.S. Federal Reserve Chairman Alan Greenspan warned Monday that the American economy might slip into recession by year's end.

He said the U.S. economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end.


"When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite link to a business conference in Hong Kong. "For example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."

"While, yes, it is possible we can get a recession in the latter months of 2007, most forecasters are not making that judgment and indeed are projecting forward into 2008 ... with some slowdown," he said.

More: http://biz.yahoo.com/ap/070226/hong_kong_us_greenspan.html?.v=4

[AndyA]

1. But * says everything is just great.

The economy is good.

Murkins are prosperin'.

We're winnin' the war in Iraq.

Blah blah blah.

How can this be? Someone must be lyin'...

Edit to add :sarcasm: just in case someone couldn't figure it out.

[rock]

3. "Someone must be lyin'"

But who? I'm clueless.

[tridim]

2. Just in time for the Gore to fix it

I've seen this movie before.

[A HERETIC I AM]

4. I am curious how "may" becomes "likely"

That the economy runs in relatively predictable cycles of expansion, peak, contraction, recession, recovery - is not news. The title of your original post says "Likely" while everything Greenspan has said is "May" or "Possibly".

Economists have successfully predicted 15 of the last 4 recessions.

A recession is just that - the economy receding. NOT crashing and NOT a depression

This is not 1929 and a depression is not around the corner, much to the contrary of what many on DU seem to think.

[WI_DEM]

5. Oh, no just with the election year coming up and the GOP would have to contend with Iraq and

a recession. So sad, too bad.

hmm, I wonder if the GOP ever regrets stealing the 2000 election?

[maxsolomon]

6. shut up you old goat

its not your job to screw the lower & middle classes over any longer. its bernacke's.

[aint_no_life_nowhere]

7. Looks like RapePublics will be whipping out the Clinton excuse again

It will either be described as left-over problems by Bill or the anticipated future problems of Hillary. It will be as though George Bush never existed.

[Quixote1818]

8. They will blame it on the Democratic Congress nt

[tridim]

10. Probably, but until 08 they will just ignore it

It's worked for them before.

[LSK]

16. are they going to be blaming Clinton 100 years from now???

Maybe this is all Lincolns fault???

:shrug:

[SoCalDem]

9. Isn't that "special"?

He lied through his teeth for more than a decade, manipulated the hell out of our economy, and now that he's out, he's "worried".. What an ASS!

[Skink]

11. We could have pumped Social Security funds into the market but no

[spanone]

12. bush* is gonna hand over a used, broke, raped nation to his predecessor.

It's not gonna be pretty.

[tridim]

14. Just like Daddy,

but quite a bit worse.

[mnhtnbb]

17. Actually, he'll hand it to his successor--unless Bill Clinton takes office again.

[aint_no_life_nowhere]

21. Somehow, his predecessor will get blamed

I keep hearing the name of Bill Clinton mentioned by Republicans even today. Last week, I heard J.C. Watts blame Bill Clinton for the Katrina fiasco. Incredible.

[Iwasthere]

13. Anyone remember when Greenspan was sayin, "Oh no! We shouldn't pay off the...

nations debt with the surplus (NOT pay down but actually PAY IT OFF!) But instead we have given it to the rich and also spent it on *s personal war.

[lovuian]

15. economics 101 You can't have 90% of a countrys assets owned

by a few...and yet Greenspan and the rest of the economists ignore this

It produces Depressions
We are reliving the robber baron era

[Rex]

18. Thank you Capitan Obvious!

Worthless little man.

[Yavin4]

19. Greenspan Should Know. He Started It.

That's like Rumsfeld saying that Iraq will be in chaos.

[MadHound]

20. Yeah, and ol' Alan boy should know, since he insured that it would be coming for a return visit.

He kept interest rates artificially low throughout the ninties, and kept dropping them all through the tech sector bust. This prompted all of that money to go into real estate sector, prompting the housing bubble to form. While in the short term this kept the recession at the beginning of Bushboy's first term mild, it really just postponed the worst effects until the housing bubble burst. In fact it could well be argued that by postponing the worst of the effects, he compounded the damage that this upcoming recession will bring. We'll see, but it wouldn't suprise me at all to see our recession slip into a depression mighty damn quick. Too many factors are in place for it to do so.

[Horse with no Name]

22. Could it be because you propped up this administration

And now it just can't be stopped?

[malaise]

23. That old fugger

hid the truth for Bush for way too long. Fugg him. I wish him nothing good.