|
Regarding interest rates:...he made clear in his final midyear economic report to lawmakers that the Federal Reserve Board would continue raising interest rates at the same gradual pace it has for the past year.
Regarding the housing market:* "The significant rise in purchases of homes for investment since 2001 seems to have charged some regional markets with speculative fever," Greenspan said.
He also said that the increased use of exotic types of mortgage such as interest-only mortgages were of "particular concern." He said these types of mortgages left home buyers "vulnerable to adverse events" if home prices begin to fall.
It marked Greenspan's most extensive comments on the possibility that the surge in housing prices in parts of the country could be creating a speculative bubble similar to the one on Wall Street that burst in early 2000.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
|
Threaded Mode
