The recession will be long and deep.
Former Federal Reserve Chairman Alan Greenspan warned that the current global recession "will surely be the longest and deep since the Protected content and argued that more funds are needed to rescue the government to stabilize the U.S. financial system.
"To stabilize the U.S. banking system and restore normal lending, will require more funds TARP, told the Economic Club of New York.
The Asset Relief Program for Problem (TARP for short) designed to rescue banks has been partially successful, he said.
Despite his gloomy diagnosis of the crisis, Greenspan said that the pace of economic deterioration "can not persist indefinitely."
The former official reiterated, however, that recovery in the housing sector is a necessary condition for ending the financial crisis and said that "the prospects of stabilizing the prices of the houses remain many months away."
The stock market, meanwhile, is being overtaken by "a level of fear did not experienced since early twentieth century," said Greenspan. "Certainly in any historical measure, the global stock prices are cheap. But history also suggests could be a lot cheaper before they recover.