Greenspan: US economy is 'touch and go'

Alan Greenspan, the former chairman of the Federal Reserve, believes the US economy still faces the threat of the dreaded double dip recession.

Speaking to NBC, Greenspan says the US economy might get worse before it starts to meaningfully improve. "We are in a pause in a recovery, a modest recovery, but a pause in the modest recovery feels like a quasi-recession," he says. Greenspan says the double-dip could happen if home prices, which have begun to stabilise, started falling again. He warns another wave of foreclosures could trigger more price declines. "It is touch and go," Greenspan adds. His comments came as the US economy saw second quarter growth slip to a worse than expected 2.4%.