Friday, June 17, 2011

GREECE DEFAULT WILL DESTROY US ECONOMY

A default by Greece could drive the US back into recession, according to the former Federal Reserve chairman Alan Greenspan.
Mr Greenspan told Bloomberg the chances of Greece defaulting are now "so high that you almost have to say there's no way out," which could put pressure on some US banks.

He argued Greece's debt crisis had the potential to push the US into another recession, as without it the probability of a recession "is quite low".
"There's no momentum in the system that suggests to me that we are about to go into a double-dip," he said. Mr Greenspan said the US's debt issue is becoming "horrendously dangerous" and said that he doubts lawmakers have another year or two to solve it.

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