Greenspan: Recession chances '50% or better'

Former Fed chairman, speaking at Houston conference, also promotes nuclear power and electric cars.

Former Federal Reserve Chairman Alan Greenspan said Thursday there's at least a 50% chance the United States will slip into recession, and that the storm clouds over the economy won't clear until home prices bottom out.

Greenspan, speaking at the Cambridge Energy Research Associates' annual energy conference in Houston, said that what may derail the economy are tightening credit markets and a potential slowdown in consumer spending sparked by defaults in the real estate market.

"We're clearly on the edge, it's 50% or better" chances the economy will slip into recession, he said.

If it weren't for the fact that business were so well-supplied with capital - thanks to the low interest rates over the last several years - he said the economy would already be in recession.

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