The soon to retire Greenspan reissued an old warning:
“If . . . the pernicious drift towards fiscal instability in the United States and elsewhere is not arrested, and is compounded by a protectionist reversal of globalisation, the adjustment process could be quite painful for the global economy”.What this means to me is that the US needs to take action to reduce its $668 billion current account deficit. Otherwise, the long term outlook for the US economy and US stocks remains a bit cloudy. Posted by James Trotta at December 4, 2005 4:59 PM