Greenspan: Get Your Money Out of U.S. Markets
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Former Fed Chair Alan Greenspan issued a dire warning to U.S. investors: get your money out of the market!
In a CNBC interview Friday morning, Greenspan said the U.S. markets and economy face severe consequences from the European debt crisis. He believes the situation will not resolve itself without major debt restructuring. Greenspan believes Greek debt will need to be restructured with a substantial reduction in principal for bondholders of sovereign debt.
He feels Greece is "broke," and offers no other credible solution to the problem.
While U.S. banks have comparably limited exposure to European debt, overseas counterparts have a notable influence on the U.S. and global financial system.
Greenspan said assuming the American banking system is independent of European debt is "utterly unrealistic." "The size of the problem coming from Europe... I don't think it could be overestimated," Greenspan loathed.
In a CNBC interview Friday morning, Greenspan said the U.S. markets and economy face severe consequences from the European debt crisis. He believes the situation will not resolve itself without major debt restructuring. Greenspan believes Greek debt will need to be restructured with a substantial reduction in principal for bondholders of sovereign debt.
He feels Greece is "broke," and offers no other credible solution to the problem.
While U.S. banks have comparably limited exposure to European debt, overseas counterparts have a notable influence on the U.S. and global financial system.
Greenspan said assuming the American banking system is independent of European debt is "utterly unrealistic." "The size of the problem coming from Europe... I don't think it could be overestimated," Greenspan loathed.
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