Why did Greenespan say that this is a possibility??
2007-02-26 23:44:48 · 2 answers · asked by Anonymous in Social Science ➔ Economics
I have not heard Greenspan or Bernake say this, but they may have. I know the fear of recession mainly comes from the plummeting housing market, and the fact that wages are still lagging behind inflation.
The only prominent person I've seen mention this is George Soros.
2007-02-27 00:51:51 · answer #1 · answered by tarnefar 2 · 0⤊ 1⤋
He said this because historically, the economy goes through a recession every so many years. Our last one was in the early part of this century, so from a historical standpoint, we are due for a recession soon. Also, since the economy has begun to slow, this is an indication that it could occur soon. However, time between recessions has been getting longer and recessions themselves have gotten shorter, so I wouldn't worry too much about it if it does happen. It is unlikely to last more than 6 months.
2007-02-27 08:52:51 · answer #2 · answered by theeconomicsguy 5 · 0⤊ 0⤋