No recession yet, says Greenspan

THERE is more than a 50% chance the US could go into recession, former Fed chairman Alan Greenspan said in Spain’s El Pais newspaper yesterday.

However, the US has not yet entered a recessionary state marked by sharp falls in orders, strong rises in unemployment and intensive weakening of the economy, he said.

“We would have to see signs of this intensification: there are some, but not many yet. I would not describe the situation we are in as a recession, though the chances that we’ll have one are more than 50%,” he said.