Leave it to Alan “It’s not easy being” Greenspan to ruin our newly minted favorite holiday—Biggest LBO Ever Day. We thought we’d reached a point where we could expect, if not full on participation in the breaking of the coal burning energy plant-shaped piñata that Carney picked up on the way to work this morning, at least some level of cooperation on this joyous occasion. But apparently we thought wrong. Greenspan, like always, had to go and ruin it, like he ruined Schwarzman’s birthday (yeah, like we could really be expected to show up with a huge salsa stain down the front of our dress), like he ruined Sam Zell’s Purim Party ‘04, like he ruins EVERYTHING!
"When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite link to a business conference in Hong Kong. "For example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."
Greenspan said that while it would be "very precarious" to try to forecast that far into the future, he could not rule out the possibility of a recession late this year.
Greenspan also warned that the U.S. budget deficit, which for 2006 fell to $247.7 billion, the lowest in four years, remains a concern.
Now, if you’ll excuse us, we’re going to attempt to salve our wounds with this. It probably won’t help, but, as you can likely glean, we’re pretty much desperate at this point in time.
Greenspan Warns of Likely U.S. Recession [AP via Yahoo! Finance]