Greenspan Predicts Housing Market Will Eventually Cool Down and Leave Some

[steve2470]

Feeling Less Wealthy (rest of headline)

http://ap.tbo.com/ap/breaking/MGBV2IF5WCE.html

JACKSON, Wyo. (AP) - The red-hot housing market will eventually cool down, making some people feel less wealthy and less inclined to be big spenders, Federal Reserve Chairman Alan Greenspan said Saturday.

Greenspan's remarks, wrapping up a two-day economic conference sponsored by the Federal Reserve Bank of Kansas City, followed up on a strong warning he sounded one day earlier.

The Fed chief on Friday cautioned Americans against thinking the value of their homes and other investments will only go higher, saying "history has not dealt kindly" with that kind of optimism.

If house prices were to fall suddenly or if interest rates were to rise rapidly, some local housing markets, homeowners and lenders could get clobbered.

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[Skink]

1. Greenspans warning to the ultra rich...

Divest now leaving the average Joe holding the ball.

[TriMetFan]

2. Will all I got to say is...

Here in Portland OR. in the past 2 weeks house prize's have gone up by 29%. There has to be a time when the rug will be pulled form under every-one and price's will come down, but by how much?

[GreenPartyVoter]

3. The banks won't feel less walthy. They got everyone by the short ones

regardless of the temperature of the markets.

[lovuian]

4. I kinda wonder if Greenspan is wrong here!!!

Maybe what we are seeing is the devaluing of the dollar's worth and inflation!!! He has hidden it with the stats but the industry knows the price of wood labor tile carpet have gone up!!!

The industry is reflecting that!!!