US Facing 'Dangerous' Threat From Euro Debt: Greenspan

The U.S. economy and stock market face severe consequences from the European financial crisis, which will not resolve itself without major debt restructuring, former Federal Reserve Chairman Alan Greenspan said.

CNBC

"I think it's very dangerous," Greenspan said in a CNBC interview. "Everyone's got their fingers crossed."

As global policy makers struggle to find a solution to the daunting problems Greece and other nations face with sovereign debt , the primary debate in the U.S. is how much contagion there will be for the domestic economy.

For Greenspan, there is no question: The threat from Europe is real and it is substantial.

While U.S. banks don't have a comparatively high level of exposure to the sovereign debt itself, he said the domestic financial system is nevertheless reliant on the stability of its European counterparts.

The stock market, meanwhile, has been heavily influenced on the daily news reports coming out of Europe and the plethora of proposed solutions that emerge. Read more