Tuesday, August 9, 2011

Greenspan sees stock market drop after downgrade (AP)

WASHINGTON ? Former Federal Reserve Chairman Alan Greenspan says he expects the stock market slide to continue in the wake of a decision by credit rating agency Standard & Poor's to downgrade the U.S. credit rating.

Appearing Sunday on NBC's "Meet the Press," Greenspan said markets will take time to bottom out and that he expects a negative reaction on Monday to the S&P action.

But Greenspan also says he doesn't see any risk in investing in the United States and says that S&P's downgrade won't change that.

The former Fed chairman says the downgrade "hit a nerve" and is damaging to the "psyche" of the country. But he says he can't foresee a scenario in which the U.S. will default on its debts.

Source: http://us.rd.yahoo.com/dailynews/rss/politics/*http%3A//news.yahoo.com/s/ap/20110807/ap_on_go_ot/us_us_debt_rating_greenspan

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