The chances of the US economy slipping into another recession are close to 25-30

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per cent, a noted American economist said.

"I see a third to fourth of a chance of a double dip (in the US economy)," noted American economist and former Chairman of the Federal Reserve of the United States, Alan Greenspan, said while addressing an audience through video- conferencing during an award function here yesterday.

The chances that the US slips into another recession are 25-30 per cent, Greenspan said.

According to him, to reduce the double dip probability, recovery in asset base should be created through rising asset prices.

The US Central Bank has done an excellent job to tackle the finance crisis, he said. "You have to have sovereign credit for private credit in the wake of the crisis," Greenspan said.

While expressing concern over the long-term impact of Government deficits, Greenspan said that this had been a crisis of unprecedented proportions, but he did not see another round of stimulus in the US.

"We have had enough stimulus in the US for the moment. It is not a good idea to expand deficit levels in the US. Longer-term consequences of expanding deficits are 'extraordinarily negative.' We need to allow the markets to absorb stimulus and calm down," Greenspan said.

The major problem right now is an extraordinary amount of risk aversion, he said. According to Greenspan, the idea that economies can decouple is an illusion as emerging economies are closely connected with the developed world.