Tags: housing | bubble

Greenspan: Fed Not to Blame for Housing Bubble

Tuesday, 12 May 2009 04:26 PM

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink

WASHINGTON -- Former Federal Reserve Chairman Alan Greenspan Tuesday brushed back critics who contend that easy monetary policy fueled the housing bubble and ensuing bust, saying, "I respectfully disagree; they're wrong."

Mr. Greenspan was asked after a speech to a National Association of Realtors conference whether, in hindsight, he thought interest rates should have risen more when he was chairman earlier this decade.

According to The Wall Street Journal, he responded that housing activity is driven by long-term rates, and not the overnight rates set by the Fed. The housing boom, he added, actually began in 2000, one year before the Fed started cutting interest rates in 2001.

"I think there is a recalibration of financial history that I find very puzzling," Mr. Greenspan said.

Read the Full Story Here

© 2014 Newsmax. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved