Greenspan sees stock market drop after downgrade

Former Federal Reserve Chairman Alan Greenspan says he expects the stock market slide to continue in the wake of a decision by credit rating agency Standard & Poor's to downgrade the U.S. credit rating.

Appearing Sunday on NBC's "Meet the Press," Greenspan said markets will take time to bottom out and that he expects a negative reaction on Monday to the S&P action.

But Greenspan also says he doesn't see any risk in investing in the United States and says that S&P's downgrade won't change that.

The former Fed chairman says the downgrade "hit a nerve" and is damaging to the "psyche" of the country. But he says he can't foresee a scenario in which the U.S. will default on its debts.