February 26, 2007
* Cause greatest bubble in recorded human history - check
* Deny you did that - check
* Tell everyone that housing crash has ended - check
* Warn today of a recession but don't say your stupidity was the cause - check
* Go home and admire your Presidential Medal of Freedom - check
Former U.S. Federal Reserve Chairman Alan Greenspan warned Monday that the American economy might slip into recession by year's end.
He said the U.S. economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end.
"When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite link to a business conference in Hong Kong. "For example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."
"While, yes, it is possible we can get a recession in the latter months of 2007, most forecasters are not making that judgment and indeed are projecting forward into 2008 ... with some slowdown," he said.
Greenspan said that while it would be "very precarious" to try to forecast that far into the future, he could not rule out the possibility of a recession late this year.
"We are now well into the contraction period and so far we have not had any major, significant spillover effects on the American economy from the contraction in housing," he said.