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Former Federal Reserve Chair Alan Greenspan told CNBC’s “Squawk on the Street” on Friday that the U.K. voting to leave the European Union “is just the tip of the iceberg.”
Britons voted by 51.9 percent to quit the 28-country union, shocking markets that had priced in a win for “remain.”
“The problem that’s causing the British problem is far more widespread,” Greenspan said.
The former Fed chair explained that the result of the referendum will “almost surely” lead to the Scottish National Party trying to “resurrect Scottish Independence.”
“This is the worst period, I recall, since I’ve been in public service. There’s nothing like it, including the crisis… This has a corrosive effect, which is not easy [to make] go away,” Greenspan said.
Greenspan went even further and said that the “euro currency is the immediate problem.” While the euro and the eurozone were major steps in a movement towards European political integration, “it’s failing,” he said.
The former Fed chair said that the fundamental problem is that “real incomes are not going anywhere.”
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