Sunday, August 7, 2011

Double dip depends on Europe, not US: Greenspan

Former Federal Reserve Chairman Alan Greenspan on Sunday downplayed the risk of a double-dip recession in the United States, saying its domestic economy was in better shape compared to its European peers, according to firstpost.

A double-dip recession “depends on Europe, not the United States,” Greenspan told NBC television’s “Meet the Press.” “The United States was actually doing relatively well — sluggish, but going forward until Italy ran into trouble.”

The US economy stumbled badly in the first half of 2011 and came dangerously close to contracting in the January-March period, raising fears that the economy was sliding back into recession.

Those fears were calmed somewhat last week when a debt deal was agreed before the August 2 deadline as well as data showing that employers added 117,000 jobs in July. But Standard & Poor’s downgrade of the country’s top-notch “AAA” credit rating late on Friday to “AA+” could hurt the recovery….

Read more at http://www.firstpost.com/fwire/double-dip-recession-depends-on-europe-not-us-greenspan-55850.html

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