The Former U.S. Federal Reserve Chairman Alan Greenspan warned today, that the American economy might slip into recession by year's end.
This conclusion came after considering the cycles of recent periods of growth and recessions.
The U.S. economy has been expanding since 2001, but there are several clouds in the horizon.
Greenspan mentioned the stabilization of profit margins, as an early sign of the beginning of the end for the economic cycle.
The increasing American budget deficit was mentioned as well.
The former Chairman, denied an "economic spillover effect" from the declining housing market.
The National Association for Business Economics predict economic growth of 2.7 percent this year, the lowest since 2002.
And they believe that the housing construction will plunge by 14.9 percent this year.
If there is a recession it will be a nasty one ,because consumers now face high energy prices, negative savings and high levels of debt.
