In a 2005 speech, Alan Greenspan said,
"The apparent froth in housing markets may have spilled over into mortgage markets. The dramatic increase in the prevalence of interest-only loans, as well as the introduction of other, more-exotic forms of adjustable-rate mortgages, are developments that bear close scrutiny."—September 26, 2005
Indeed! For "Greenspeak" that seems pretty clear and even clairvoyant. For more Greenspan wisdom, readers will be turning to Chairman Alan's new book, The Age of Turbulance out today.
To read Mr. Greenspan's blog, click here.