According to former chairman of the Federal Reserve Alan Greenspan, the U.S. economy has descended into a recession. While we still haven’t seen a decline in our gross domestic product (GDP) for two consecutive quarters (this is the definition of a recession), Greenspan argued that:
“Consumers are beginning to shrink in, the automobile markets are beginning to contract, production is beginning to ease, and we are in the throes of recession.”
But, according to Greenspan, none of the current woes are his fault:
“I have no regrets on any of the Federal Reserve policies that we initiated back then, because I think they were very professionally done.”
He went on to argue that the economy won’t stabilize until the housing market recovers, and that federal intervention will be required to speed that process along, much like what happened during the resolution of the savings and loan crisis during the 1980s.