Alan Greenspan On The Downgrade: "It Hit A Nerve"

Greenspan Meet The Press

Photo: NBC News

Former Fed Chairman Alan Greenspan addressed the S&P downgrade on NBC’s “Meet the Press” today, saying he disagreed with it because “there is zero probability of default.”Greenspan said “its difficult to say” how the markets will react tomorrow. Adding that the downgrade has hit the “psyche” of the country.

“It hit a nerve that there is something basically bad going on,” he said. “It hit the self-esteem of the United States.”

Greenspan said the chances of a double-dip recession “depends on Europe.”

“The United States was doing relatively well — sluggish, but going forward — until Italy ran into trouble,” he said.

Watch the full interview below:

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