Credit crunch taking toll on US economy: Greenspan
Friday, 12 October 2007
NEW YORK, Oct 11 (Reuters): The credit crunch that has troubled financial markets in recent months will eventually take its toll on the US economy, former Federal Reserve Chairman Alan Greenspan said Wednesday.
Greenspan said house prices would almost certainly fall and that the slump will eventually prompt consumers to cut back spending. He was speaking at the World Business Forum in New York.
"When you get house prices flattening out, you begin to get pressures on consumption," Greenspan said.
He also said that rising stock prices could help offset the drop in the value of home equity.
Greenspan said house prices would almost certainly fall and that the slump will eventually prompt consumers to cut back spending. He was speaking at the World Business Forum in New York.
"When you get house prices flattening out, you begin to get pressures on consumption," Greenspan said.
He also said that rising stock prices could help offset the drop in the value of home equity.