Greenspan On A Possible Recession

Alan Greenspan gave an interview to NPR News' Morning Edition. Here is an excerpt (via AP): 

Former Federal Reserve Chairman Alan Greenspan says the odds the U.S. will fall into a recession are "clearly rising"...

He said he felt this way because of the slowing pace of growth. "We are getting close to stall speed," he said. "We are far more vulnerable at levels where growth is so slow than we would be otherwise," he added. "Indeed, it's like someone who has an immune system that's not working very well is subject to all sorts of diseases and the economy at this lever of growth is subject to all sorts of shocks."

Mr. Greenspan's immune system analogy implies that the economy is healthy during the boom...that the economy is working well during the boom. 

This is not true.

For it is during the boom that damage is being done. Malinvestment occurs during the boom.

Mises wrote, "The boom produces impoverishment." By this, he meant a boom created via the inflation of the money supply. With sound money, a boom in one particular industry would not be cause for alarm for the entire economy.

A credit-induced boom is not the healthy state of an economy, and recession is not a disease. The recession is the cure; the return to a healthy state of affairs.