Greenspan Cites Local Housing Bubbles

WASHINGTON – Federal Reserve Chairman Alan Greenspan spoke May 29 at the Economic Club of New York and called attention to local housing bubbles that he says are becoming evident. Speaking on the surge in home sales, Greenspan told the audience that, "it's pretty clear that it's an unsustainable underlying pattern. People are reaching to be able to pay the prices to be able to move into a home." He added that, "While we don't perceive that there is a national bubble, it's hard not to see that there are a lot of local bubbles." -