Alan Greenspan: Recession and the Stock Market Crisis Could Continue
By. Gupta Rajsingh
Washington – Former U.S. Federal Reserve Board Chairman (The Fed), Alan Greenspan, warned that the recession and financial crisis as well as the decline in stock prices on Wall Street could continue. This is the impact of U.S. debt rating lowered by one of the leading rating agencies, Standard &Poor’s.
According to the Associated Press, the assessment was delivered by Mr. Greenspan in an interview with NBC television station in the show “Meet the Press” Sunday.According to Greenspan, the stock market will take time to get up again. He predicted that negative sentiment will remain visible on the trading floor after the effects of the S& P on Friday last week.
At that time, the S & P downgrade U.S. debt, from AAA to AA +. According to the BBC, the decline in ranking was related to the size of budget deficits that must be borne by the current U.S. government after last week’s hard to compromise with the parliament in determining the maximum limit new debt.
“The problem of this deficit is greater than that calculated, because the actual figures used by those who count deficit was based on the level of economic activity that we have not accomplished,” said Greenspan, who led the Fed from 1987 to 2006.
Greenspan claimed the latest assessment of the S & P was enough to shake the psychological conditions in the U.S. market. However, Greenspan claimed to have seen a big risk when investing in the U.S.. For him, the S & P downgrades will not affect investment in the U.S..
Sharp decline not only happening on Wall Street. Meanwhile Europe and Asia Exchanges experienced a similar shock at the weekend. Even the stock price index at a number of major Asian markets Monday morning remain weak.
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