Friday, August 26, 2005

Greenspan's Housing Worries

Speaking at a Kansas City Fed symposium in Jackson Hole, Wyoming, Federal Reserve Chairman Alan Greenspan expressed concerns about the housing market that has some investors even using the "R" word (Recession). Here's a Greenspan quote from the Bloomberg coverage:
"History has not dealt kindly with the aftermath of protracted periods of low risk premiums.''
This from the Reuters coverage by Glenn Somerville:
"From his comments, it is clear that the Fed will keep raising rates, hoping to bring the housing market to a very soft landing," said economist Drew Matus at Lehman Brothers in New York.

Find the Bloomberg story at this link.
Find the Reuters story at this link.
Find the full text of Greenspan's remarks at this link

— The Boy in the Big Housing Bubble