Dec 1, 2007

Alan Greenspan: "The housing bubble is not a reflection of what we did"

Markets are becoming aware of the fact that the decline in house prices is not stopping. I have no particular regrets. The housing bubble is not a reflection of what we did, as it is a global phenomenon.

[The collapse of the U.S. subprime market] was a shocker because no one expected it. It was the weakest link in the international financial sector. The decline in subprime-financed housing starts is over. It went to zero and can't get any lower.

~Alan Greenspan, former Federal Reserve Chairman, "Greenspan Has No Regrets as Housing Slump Deepens," Bloomberg.com, November 23, 2007

(Greenspan spoke in Oslo.)

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