On the housing crisis, Greenspan suggested that increased cash from the government for homeowners facing the mortgage crunch-- whether in the form of a tax break or other financial help -- could alleviate the stress of the situation without affecting mortgage rates. "I don't know if it would work, but it would certainly help people -- it would help their incomes; it would help their personal state, without affecting the structure of the way markets are behaving and the way adjustment process is going on," he said.
Any step to prevent foreclosures will affect the market and the way "adjustment" will operate.
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