Greenspan Issues Dire Warning on Housing, Economy

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00015211-greenspan-issues-dire-warning-on-housing-/

By Greg Robb, MarketWatch

In his sharpest warning to date about rising home prices, Federal Reserve Chairman Alan Greenspan said the housing boom is an economic imbalance that could end badly.

In his final appearance at the high-profile policy conference at the Jackson Hole resort, Greenspan said high home prices are partly due to the low risk premiums demanded by investors, which have kept interest rates low.

Such increases in asset values “are too often viewed by market participants as structural and permanent,” he said, adding that lenders could quickly turn cautious and the “newly abundant liquidity” could “readily disappear.”

For this complete story, please visit Housing boom is an imbalance: Greenspan.

Greenspan Issues Dire Warning on Housing, Economy

Unknown Author

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