Greenspan puts recession odds at 50%; Dow sinks 172
CBS News
Transcript
[Music] President Bush tried to ease concerns about the economy during a speech in Virginia. He said the economic fundamentals, including the job market, remain strong, but Mr. Bush called on Congress to address the housing slump and credit problems. He never used the word recession, but Alan Greenspan did. The former Federal Reserve chairman put the chance of recession at 50%. Greenspan also warned of the possibility of stagflation. That's when prices rise at the same time the economy cools down and that sparked a sell-off on Wall Street. The Dow sank 172 points while the Nasdaq plunged 61. Retailers are in the home stretch with just seven full shopping days left until Christmas. They are pulling out all the stops to salvage one of the worst holiday shopping seasons in 5 years. In addition to deep discounts, many stores are extending their hours to give the procrastinators every chance to spend. US homebuilders remain extremely pessimistic. The homebuilders index remains at a 22-year low for the third straight month. It shows that only 1if of builders are confident in the market for single family homes. That's your money watch. Log on to cbsnews.com for more. In New York, I'm Alexis Christopherus.