Dec 17, 2007

Greenspan On Stagflation And Recession

We know that former Fed Chairman Alan Greenspan's The Age Of Turbulence is being read widely around town - Whitehead even stole a quote from it in his interesting speech last week. We therefore recommend an interview with Greenspan by former Clinton spokesperson George Stephanopoulos on ABC in the US a few hours ago.

Greenspan talks about both the chances of a recession in the US (rising and at 50%) and of stagflation ("economy showing warning signs").

Greenspan also suggests that China is responsible for poor productivity growth in the US. How long before the NZ Government adopts this excuse????

Meanwhile we don't like this:

Updated 0710 GMT
Nikkei 225 15261
Hang Seng 26653
All Ordinaries 6332

Nor do we like this:
"Asia's dynamic economic growth is expected to slow modestly in 2008 as its biggest economies grapple with emerging problems, from inflation in China to appreciating currencies in India and Japan." Full report on CNN.