High US Home Inventories A Major Concern: Greenspan

Source : The Business Times, November 6, 2007

TOKYO - Former Federal Reserve Chairman Alan Greenspan said on Tuesday that falling US home prices and high home inventories raised major concerns amid the ongoing turmoil in the sub-prime mortgage market.

Mr Greenspan said that the slide in the dollar was neutral for the economy, and that the currency would slide in the long run relative to East Asian currencies.

He added that the slide in the dollar was neutral for the economy, and that the currency would slide in the long run relative to East Asian currencies.

'I don't think it's favourable or unfavourable,' Mr Greenspan said when asked about the falling dollar.

'What is not true is that because we have a large current account deficit, the dollar has to weaken,' said Mr Greenspan, who was speaking to a CEO conference in Tokyo via video link from Washington. -- REUTERS