NewsMine — economy — united-states — 2007-jan-may — Viewing Item

Greenspan warns of US recession { January 2007 } Original Source Link: (May no longer be active)    http://abcnews.go.com/Business/wireStory?id=2904418 http://abcnews.go.com/Business/wireStory?id=2904418 Greenspan Warns of Likely U.S. Recession Alan Greenspan Warns That U.S. Economy May Slip Into Recession by End of Year The Associated Press HONG KONG Feb 26, 2007 (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. Greenspan said that while it would be "very precarious" to try to forecast that far into the future, he could not rule out the possibility of a recession late this year. The U.S. economy grew at a surprisingly strong 3.5 percent rate in the fourth quarter of 2006, up from a 2 percent rate in the third quarter. A survey released Monday by the National Association for Business Economics showed that experts predict economic growth of 2.7 percent this year, the slowest rate since a 1.6 percent rise in 2002. Greenspan also warned that the U.S. budget deficit, which for 2006 fell to $247.7 billion, the lowest in four years, remains a concern. "The American budget deficit is clearly a very significant concern for all of us that are trying to evaluate both the American economy's immediate future and that of the rest of the world," he said via satellite at the VeryGC Global Business Insights 2007 Conference. Greenspan also said he has seen no economic spillover effects from the slowdown in the U.S. housing market. "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. Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Copyright © 2007 ABC News Internet Ventures

Almost 7m kids die a year from hunger Anxiety over housing market pulls down stocks { March 28 2007 } Credit counselors overwhelmed by mortgage crisis Dollar drops under half british pound { March 2007 } Dollar may fall on weak manufacturing { December 2007 } Dollar nears record low against euro { March 2007 } Dow fell over 500 points { January 2007 } Dow hits 12800 record high { March 2007 } Existing home sales fall 8 percent { March 2007 } Factory orders plunge { March 6 2007 } Gold selloff continues to cover equity losses { February 2007 } Greenspan warns of US recession { January 2007 } Hershey cuts jobs builds plant in mexico { January 2007 } Home prices to fall for first time since great depression { April 12 2007 } Investers sell gold to recover market losses { January 2007 } January 2007 new homes sales fall 17 percent Jobless numbers highest in weeks { December 2007 } Late mortgage payments up forclosures surge { March 14 2007 } Retail sales fell sharply last month { May 11 2007 } Soaring rates risks 2m american homes { March 14 2007 } Stocks plummet on subprime concerns Trade deficit with china reaches record 214b { January 10 2007 } US food prices spiked { March 2007 } US productivity growth behind EU for first time { December 2007 } Wallstreet plummets after chinese stocks drop { January 2007 } Files Listed: 25

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