US economy on brink of recession: Greenspan

Former US Federal Reserve Chairman Alan Greenspan warned on Tuesday the US economy was on the brink of a recession, with the chances of that happening at more than 50 percent. The US economy has been hit by a credit crisis, which began in the sub-prime mortgage market, prompting a series of interest rate cuts to help boost the economy.
But price pressures are growing, making more rate cuts unlikely. Asked if the US economy was in recession, Greenspan said: "We are on the brink." A quick recovery was unlikely, he said via video link to a conference in Johannesburg. "A rebound at this stage is not something I think is in the immediate outlook," he said.