Recession: Greenspan Says It’s Possible This Year

Recession: Greenspan Says It’s Possible This Year

As if the U.S. auto industry wasn’t struggling enough, now former U.S. Federal Reserve Chairman Alan Greenspan warns that the American economy might slip into recession by year’s end.

Greenspan said in a satellite link to a business conference in Hong Kong signs suggest the current economic expansion, which started in 2001, is coming to an end. Those worrisome signs include stabilizing corporate profit margins and a still large federal budget deficit, though Greenspan sees little impact on the economy from the current housing slowdown.

Other economists note the economy has slowed to its lowest level since 2002 but put the earliest possibility of a recession into next year.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.