As reported in Reuters:

 

JOHANNESBURG (Reuters) – Former Federal Reserve Chairman Alan Greenspan warned on Tuesday the U.S. economy was on the brink of a recession, with the chances of that happening at more than 50 percent.

 

The U.S. economy has been hit by a credit crisis, which began in the sub-prime mortgage market, prompting a series of interest rate cuts to help boost the economy. But price pressures are growing, making more rate cuts unlikely.

 

Asked if the U.S. economy was in recession, Greenspan said: “We are on the brink.”

A quick recovery was unlikely, he said via video link to a conference in Johannesburg. “A rebound at this stage is not something I think is in the immediate outlook,” he said.

“There are still very considerable structural problems remaining in the financial system. They will remain for a while. It’s going to be very difficult. There are a lot of unexpected adverse events out in front of us,” Greenspan said.

 

Greenspan said he did not believe arguments that the housing problems in the U.S. were due to interest rates being too low during his tenure. “As far as I’m concerned, the data do not support it (that argument). The housing bubble is clearly an international phenomenon.”

 

Our Perspective:

 

Pressure continues to grow in the business sector. Everyday you read a headline that another corporation is having massive layoffs. Fuel prices continue to rise, this leads to a rise in food prices. It becomes a spiraling effect. Our lack of commitment to address these issues in the past has come full circle.

 

What do we do?

 

Instant gratification has been the calling card but look where it has gotten us. We must focus on the long-term solutions that will increase the quality of life as we go forward.

 

Energy alternatives (solar, wind, geothermal), new ways to power our automobiles ( electric, water, I even heard of cooking grease). We must think outside the box to introduce new solutions that work and are a benefit to all. Just not a few.

 

Hutchinson Business Solutions, that is what we do. Introducing new ideas, creating opportunities that define a better tomorrow.

 

Let us know your thoughts? You can email george@hbsadvantage.com

 

Visit us on the web www.hutchinsonbusinesssolutions.com