Filed under: Economic data, Housing, Federal Reserve, Recession
Alan Greenspan is obtuse no longer.
The former Federal Reserve Chairman, whose incomprehensible musings were parsed by investors for years to find their hidden meanings, startled markets again by telling an audience willing to pay his hefty speaking fee that the economy is “clearly on the edge of a recession.” His remarks underscore those of his successor Ben Bernanke, who has argued the economy is slowing because of the meltdown in the subprime mortgage market.
From the Associated Press:
“If it weren’t for the fact that business was in such extraordinary good shape before this problem hit, I don’t think we’d be questioning at this stage whether we’re in a recession,” Greenspan said during a question-and-answer session with Daniel Yergin, chairman of Cambridge Energy Research Associates, the Massachusetts-based consultancy that sponsored the dinner.“We’d be talking about how long and how deep,” he said. “And we’re not there yet.”
But we’re awfully close, no?
Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.
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