By Newsmax Wires Former Federal Reserve Chairman Alan Greenspan says he expects the stock market slide to continue in the wake of a decision by credit rating agency Standard & Poor’s to downgrade the U.S. credit rating, even as an S&P official predicted little market impact.
Appearing Sunday on NBC’s “Meet the Press,” Greenspan said markets will take time to bottom out and that he expects a negative reaction on Monday to the S&P action. He cited a tumble in the Israeli stock market.
Another U.S. recession “depends on Europe, not the U.S. We were doing fine until Italy ran into trouble,” he said. “That destabilized the European system, and the crisis re-emerged. Europe is very critical to the United States in the sense not only do we have a fourth of our experts there, but more importantly, significant proportion of the foreign affiliate profits, in fact half of U.S. corporations, are in Europe.”