Greenspan Says Markets Will Recover "Sooner Rather Than Later"

Today, Former Federal Reserve Chairman Alan Greenspan said financial markets and the economy will recover as investors regain confidence. At a speech Greenspan gave Georgetown's law school, Greenspan said, "Trust will eventually reemerge as investors dip hesitantly back into the marketplace. From that point, history tells us, financial and economic revival sets in. I suspect it will be sooner rather than later.''

Greenspan continued, "Financial markets freeze up as an excess of fear displaces a protracted period of what some might call irrational exuberance. Eventually the market freeze will thaw as frightened investors take tentative steps towards reengagement with risk.''

"Broken market ties among banks pension and hedge funds and all types of non-financial businesses, will become reestablished, and our complex economy, that has the capacity to produce a fifth of the world's goods and services, will reemerge,'' he also said.

Late last month, Greenspan co-authored a letter to various lawmakers that said, "the only way that financial institutions can continue to function is for the government to provide financial support.''

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