US could slip into recession by end-year

US could slip into recession by end-year
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First Published: Mon, Feb 26 2007. 09 16 PM IST
Updated: Mon, Feb 26 2007. 09 16 PM IST
Reuters
WASHINGTON: Former Federal Reserve Chairman Alan Greenspan said it was “possible” the US economy might fall into recession by the end of the year, Dow Jones news service reported.
Greenspan was speaking via satellite link to a business conference in Hong Kong, Dow Jones said.“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; for example in the US, profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle,” he said.
“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 forecast that far in the future, he couldn’t rule out the possibility of a recession late this year, Dow Jones reported.
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First Published: Mon, Feb 26 2007. 09 16 PM IST