Greenspan's Goodbye "housing boom and long term poor economy risk" [View All]

[cthrumatrix]

Housing boom is an imbalance: Greenspan
By Greg Robb, MarketWatch
Last Update: 12:30 PM ET Aug. 26, 2005


JACKSON HOLE, Wyo. (MarketWatch) -- In his sharpest warning to date about rising home prices, Federal Reserve Chairman Alan Greenspan
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."



"History has not dealt kindly with the aftermath of protracted periods of low risk premiums," Greenspan said. Read his remarks.

http://www.marketwatch.com/news/story.asp?guid=%7BA3CA37F5%2D7729%2D4975%2D9E35%2D79C7B3CB62F5%7D&siteid=mktw&dist=

Thank goodness we have his warning about a year tooo late.

I wonder what Bushie will say?