Greenspan & The Economy

On Thursday, March 1,2007; Alan Greenspan was quoted as saying that a recession in the U.S. economy is possible, but not probable. Way to take a stand Mr. Greenspan! Nice to see he hasn't lost his touch. So which is it?

It is inevitable that the U.S. will go into recession. The question is how deep into recession will it go and when will it happen?

The Federal Reserve has taken an aggressive approach on interest rates. History shows that rarely do they ever achieve a soft landing. At some point the multitude of variables that make up the U.S. economy will hit a rough patch and the economy will dip into recession.

So when will it happen? Greenspan has covered his bases well, but does offer some advice on where the US economy is headed. Reading between the lines, he is cautious on his outlook for the U.S. economy in 2007. The recent sell-off in the world markets is also flashing caution.

Will this be the year the economy finally goes into recession? It is possible...