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Greenspan Says Americans Can Survive A Drop In House Prices

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http://money.cnn.com/2005/09/26/news/econo...dex.htm?cnn=yes

WASHINGTON (Reuters) - Though mortgage debt is rising, most Americans have built up so much equity in their homes that they could weather a price drop without serious harm, Federal Reserve Chairman Alan Greenspan said Monday.

I wonder if they can survive a drop in living standards?

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He also said

"In his remarks, Greenspan cited a study he co-authored with Fed staffer Jim Kennedy and was published separately on the Fed's Web site that found about four-fifths of the rise in mortgage debt resulted from people extracting their home equity.

It was the first such study that Greenspan has published under his own name since October 1996.

Drawing from it, the Fed chief said the increase in personal spending over the past decade may have been largely influenced by rises in home equity rather than income, thus accounting for much of the decline in personal savings rates since 1995. "

You have to read between the lines with Greenspan. ;)

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Yep Greenspan's increasing comments on the US housing Market, coupled that with Brown mentioning bubble more times than prudence today. Is just part of the proccess of conditioning the sheeple regards the inevitable forthcoming correction in house prices.

You can only manupulate markets for so long, and the bigger the manipulation the bigger the following correction.......unless of course it's different this time :rolleyes:

Edited by Catch22

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He also said

"In his remarks, Greenspan cited a study he co-authored with Fed staffer Jim Kennedy and was published separately on the Fed's Web site that found about four-fifths of the rise in mortgage debt resulted from people extracting their home equity.

It was the first such study that Greenspan has published under his own name since October 1996.

Drawing from it, the Fed chief said the increase in personal spending over the past decade may have been largely influenced by rises in home equity rather than income, thus accounting for much of the decline in personal savings rates since 1995. "

You have to read between the lines with Greenspan. ;)

But, but,....

If people are MEWing to keep you economy running, how can they have equity left to fall back on? Alan-baby, please explain this to us.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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