Former Federal Reserve Chairman Alan Greenspan said the United States may be headed for a recession?

Question

And the world's stock markets take a nose dive. Is too much weight being put on the words of an old man?

I am not questioning his statement, my question is about how Greenspan says something and the whole worlds financial market takes a dive.

Answer 1

I think he's right on the money (pun intended).

The US Economy is similar to the Vietnam Era except that there is a new currency, called the Euro, which is 30% stronger than the dollar. The collapse of the housing bubble and the continued consumption and increased poverty will result in a longer streak of Nixon like stagflation. The Fed will have to increase interest rates while Americans will have to take consumption back a notch or two.