Greenspan warns of recession, cons say economy strong?

Question

Who do you believe?

http://news.yahoo.com/s/ap/20070226/ap_on_bi_ge/hong_kong_us_greenspan

"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.

Answer 1

I believe that if Dick Cheney were Vice President on November 22, 1963, he'd say that the President is expected to make a speedy recovery.

Of course the right-wingers (let's not insult a few million truly thoughtful people by calling these bums "conservative") say the economy is great. It is... for them. Take away the richest 1 percent of the population, and we've been in a recession since 2001. The longest "real recession" since the Great Depression of the Dirty Thirties.

Answer 2

Well, I'd believe him. But you're taking the context wrong. He's not saying the economy isn't strong. He's saying it increases the likelihood of recession due to the number of years it's been since the last one.

Frankly, if this means lower interest rates coming, then it'll be good because that'll get the housing market going again. I need to move.

Answer 3

Since Greenspan hasn't been the fed chief for quite some time now, I'd say he's one of the many private citizens with an opinion.

Answer 4

Greenspan knows democrats controll congress.

Answer 5

Greenspan is out and has no insider numbers anymore (by Law) and to boot after the Dems won election and promise to raise taxes what else can he say!

Answer 6

When did Greenspan say this? He has not been Chairman of the Federal Reserve for several months now. Just look at the facts
1) Unemployment is low
2) GDP is up
3) Interest rates are low
4) Inflation is low
5) Consumer Confidence is up

PRetty Strong to me!!

Answer 7

The economy is indeed strong. Statistics and empirical evidence are undisputed. The "warning" of a recession is nothing more than a warning.
Stop crying wolf!

Answer 8

Your point is???

To think that there would never be another recession would be naive. Is five years of strong growth not enough for you?

Answer 9

Watch cons call Greenspan a: biased lib commie, who hates capitalism and prays to Stalin every night.

Answer 10

I believe the circumstances. We're spending more than we're making right now. Every day, we're dumping millions of dollars into the war in Iraq. We can't possibly replenish this money.