Alan Greenspan, famous for his murky pronouncements on the U.S. economy when he was Fed chairman, did not disappoint on Sunday.
The U.S. is in the midst of “a pause” in a “modest recovery” that feels like a “quasi-recession,” Greenspan said on NBC’s “Meet the Press” television program.
Asked whether the economy would get worse before it gets better, Greenspan responded, “Maybe, but not necessarily.”
A double-dip recession could happen if home prices, which have begun to stabilize, started falling again, he added. Home prices could stay flat or another wave of foreclosures could trigger more price declines. “It’s touch and go,” Greenspan said.