Alan Greenspan Speaks Out On US Housing Crisis

News From Vienna, Austria. September 2007. Greenspan Predicts House Prices To Drop Lower

Former Chairman of the Board of Governors of the Federal Reserve of the United States (from 1987 to 2006) Alan Greenspan, 81, was quoted as saying:

“So far, prices have dropped only slightly. But it was enough to cause alarm around the world,” he said. “Prices are going to fall much lower yet.”

“There is no doubt about the fact that low interest rates for long-term government bonds have caused the real estate bubble in the United States”

“The Federal Reserve began a series of interest rate increases in 2004. We were hoping to bring the speculative excesses in the real estate sector under control. We failed. We tried it again in 2005. Failure"