Ex-Fed Chief: Recession Likely Coming

Daily Real Estate News February 27, 2007

Ex-Fed Chief: Recession Likely ComingFormer Federal Reserve Chairman Alan Greenspan warned Monday that a recession might hit by year’s end.

Greenspan, speaking via satellite at VeryGC Global Business Insights 2007 Conference in Tokyo, pointed to stabilizing U.S. profit margins as a sign the recessionary part of the economic cycle isn’t far off. He also warned that the budget deficit, which stood at $247.7 billion in 2006, still remains a concern.

Greenspan also said the slowdown in housing wasn’t to blame. "We are now well into the contraction period, and so far we have not had any major, significant spillover effects on the American economy from the contraction in housing," he said.

Source: Associated Press (02/27/07)