Greenspan again warns of “froth” in housing

Federal Reserve Chairman Alan Greenspan in congrssional testimony Thursday spoke of “at minimum, signs of froth in some local [housing] markets.” Greenspan dismissed the notion of an impending housing bubble burst nationwide, but he did warn that some markets had risen to “unsustainable levels.” He did not say if New York’s market had reached this unsustainable or frothy level. Greenspan first mentioned the f-word on May 20. more [Newsday]