While former Fed Chairman Alan Greenspan said the U.S. economy is healthier than many other economies around the world, “we’re still not doing all that well, ” he told Bloomberg. Greenspan, who is 88, retired from the Fed in 2006. He said that while there are bright spots in the economic picture, there won’t be a full recovery until housing snaps back and companies invest in productive assets. Until then, “we have a very sluggish economy, ” Greenspan said. Although the Gross Domestic Product rose 5% in the third quarter, the fastest rate since 2003 and the Dow Jones hit an historical high of 18, 000, Greenspan sees growth falling below 3%.
Despite the bleak predictions, consumer confidence rose in December because of robust employment and low gas prices.