Another debt ceiling debacle could sink the economy
Last year's Congressional debt standoff hurt consumer confidence more than the collapse of Lehman Brothers, Betsey Johnson and Justin Wolfers write. This time could be worse. Read more at Counterparties
Housing could take another turn downward: Greenspan
Former Chairman of the Federal Reserve Alan Greenspan testifies before the House Oversight and Government Reform Committee on Capitol Hill in Washington October 23, 2008.
Credit: Reuters/Kevin Lamarque
WASHINGTON |
WASHINGTON (Reuters) - Former Fed Chairman Alan Greenspan said on Sunday that signs of stabilization and increased confidence in the economy could be dashed if home prices were to take another turn downward.
Greenspan told ABC's "This Week With George Stephanopoulos" that he didn't believe that a steep drop was in store, but home prices had stabilized only temporarily.
"It is possible that could get a second wave down," Greenspan said. "Under those conditions, we would get a very significant change in the underlying confidence in the consumer area," as foreclosures rise and more home values fall below their mortgage levels.
(Reporting by David Lawder)
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