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Greenspan: U.S. recession 'possible'

HONG KONG, Feb. 26 (UPI) -- The U.S. economy may slip into a recession by year's end, former Federal Reserve Chairman Alan Greenspan said Monday.

Addressing a Hong Kong business conference by satellite, Greenspan said he thought it was "possible" the economy would slip into a recession near the end of the year, but said it was difficult to predict the downturn's timing.

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The U.S. economy has been on a growth half of an economic cycle since 2001 and is showing signs of peaking, he said.

He recommended policymakers focus on creating an economic environment capable of absorbing unforeseen shocks, The Standard of Hong Kong reported.

Greenspan, who retired as Fed chairman in 2006, added he found it "disturbing" how little regard market players were demonstrating by their investment decisions.

"We do not and cannot look into history without being very concerned when you see the absence of awareness and concern about risk that we see today," he said.

On Oct. 19, 1987, two months after Greenspan's confirmation, the Dow Jones industrials average plummeted 508 points, losing 22.6 percent of its value, in what became known as Black Monday. That day celebrates its 20th anniversary this October.

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