Axis of Right

Three Native Rhode Islanders Commenting From the Right on Politics and Anything Else

Greenspan Warns of Recession

Posted by Ryan on February 26, 2007

Former Fed Chairman Alan Greenspan warns of a coming economic recession in the USA.  He cites stabilizing profits, and sluggish growth in the linked article.  He also says that the contraction in the US housing market has not yet effected the economy significantly, but may.

Also, I thought we were already in hard economic times!  At least I get that impression from the MSM, and the anti-tax cut Dems.   I know that high gas prices and negativity on other issues, like Iraq, have contributed to the impression that most people believe: that the 2000s have been a bad economic period when the contrary has been true!
Greenspan admits that the US economy has been growing since 2001 and the cycle is bound to swing to recession at some point– the end of the year by his estimation.  I think the housing stagnation is actually a spooky issue.  Who knows how that will seriously impact all sorts of sectors of the US economy?  The last major contraction in the housing market was a smidgen in 1991-1992 (the last significant recession) and the previous, and larger one was in 1986-1987 (a major stock market crash).  I hope that’s just a coincidence.

Pic from Fontcraft.com

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