Greenspan: "The Euro Is Breaking Down"

Alan Greenspan

Photo: AP

Some dramatic comments from former Federal Reserve Chairman Alan Greenspan.”The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system,” Greenspan said today, according to Bloomberg.

He told attendees at the Innovation Nation Forum today that European leaders must reassess the feasibility of a monetary union between 17 countries with very different ideas of government and monetary policy.

Here’s what else he had to say:

– He boded relatively optimistic on the U.S. economy, saying that the biggest threats to the American economy come from Europe.

– He’s also less worried about a double-dip recession than most, though he “certainly grant[s] the odds are rising.”

– Gold is not in a bubble. “The major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.”

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