Friday 23 November 2007

Greenspan: Global Housing Bubble

"Markets are becoming aware of the fact that the decline in house prices (in the US) is not stopping. It is at an unprecedented pace compared to the last 50 years,'' Greenspan told a financial audience in the Norwegian capital.

He said the housing bubble had burst and the market was "a good deal away" from its selling climax -- a point at which sellers ultimately lower their prices to match lower bids.

"I have no particular regrets. The housing bubble is not a reflection of what we did, as it is a global phenomenon.''

Alan Greenspan, is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. In a nutshell, he is the equivalent of Trichet of the ECB in Europe, the one that set the interest rates.

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