Former US Federal Reserve chief Alan Greenspan has called the current financial crisis in the United States as 'once-in-a-century' event.
"First of all, let's recognize that this is a once-in-a-half-century, probably once-in-a-century type of event," Greenspan said in an interview with ABC news on Sunday.
He said that the crisis was the worst he had seen and still had a long way to go and would continue to affect home prices in the US.
"There's no question that this is in the process of outstripping anything I've seen, and it still is not resolved and it still has a way to go," AFP quoted Greenspan as saying.
"And indeed, it will continue to be a corrosive force until the price of homes in the United States stabilizes. That will induce a series of events around the globe which will stabilize the system."
When asked if the US had a greater-than 50 percent chance of escaping a recession, Greenspan said, "No, I think it's less than 50 percent."
"I can't believe we could have a once-in-a-century type of financial crisis without a significant impact on the real economy globally, and I think that indeed is what is in the process of occurring," he concluded.
The financial crisis has seen the US government step in to bail out such mortgage giants as Freddie Mac and Fannie Mae.
AGB/MMN - PRESSTV