Alan Greenspan, former Federal Reserve Chairman, said a default by Greece is almost certain and could drive the U.S. economy into recession.
The problem you have is that it's extremely unlikely the political system will work in a way that solves Greece's crisis, Greenspan said.
Greenspan spoke with Charlie Rose last week.
The chances of Greece not defaulting are very small.
More than 20,000 people protested in Athens last week against wage reductions and tax increases.
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The chances of Greece defaulting are so high that you almost have to say there's no way out, said Greenspan.
There's no momentum in the system that suggests to me that we are about to go into a double-dip, Greenspan said.
Greece's debt crisis has the potential to push the U.S. into another recession, Greenspan said. However, without the Greek issue, the probability is quite low of a U.S. recession, he said.
The U.S. debt issue is becoming horrendously dangerous, said Greenspan.
He said he doubts lawmakers have another year or two to solve it.
One potential bail out for Greece could come from China according to rumors.
According to the Chinese Foreign Ministry, the Chinese Premier Wen Jiabao will visit Europe this week as it reaffirms their concern and support for Europe's efforts to overcome its debt crisis.
As of this morning, risk appetite continues to be positive following news from Greece's new finance minister Evangelos Venizelos on last Friday that Greece plans to pass austerity with changes.