Alan Greenspan on Brexit: Global economy in serious trouble, massive slowdown seen in real income

By: | Published: June 24, 2016 9:43 PM

Former Federal Reserve Chair Alan Greenspan in an interaction said that the UK voting to leave the European Union 'is just the tip of the iceberg'.

Greenspan said that the fundamental problem is that "real incomes are not going anywhere and slowing of real income is causing political problems" (Reuters)Greenspan said that the fundamental problem is that “real incomes are not going anywhere and slowing of real income is causing political problems” (Reuters)

Former Federal Reserve Chair Alan Greenspan in an interaction with CNBC said that the UK voting to leave the European Union ‘is just the tip of the iceberg’.

Predicting Brexit as big sign of trouble for the global economy, Greenspan added “Brexit is a difficult problem, it is only a tip of the iceberg”

In his interaction Greenspan indicated his concern about the state of the global economy.

The former Fed chief said,”Global economy is in serious trouble. We are not worried about recession, but stagnation”.

Also Read: Brexit: Positives for India to outweigh negatives in the medium term

Greenspan said that the fundamental problem is that “real incomes are not going anywhere and slowing of real income is causing political problems”

Britons voted by 51.9 percent to quit the 28-country union, shocking the markets that had priced in a win for “remain.”

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