Former Federal Reserve Chairman Alan Greenspan has said he believes the worst of the credit crisis is over.

In a speech made in New York, Mr Greenspan said house prices still had a long way to fall and that it was unlikely they would stabilise by year-end.

While he said that U.S. growth was likely to be slow for an extended period, a doomsday scenario was unlikely.

The U.S economy is reeling from a housing-led slowdown, with some analysts convinced it is already in a recession despite a 0.6 percent growth rate in the first quarter.