Fed's Greenspan on mortgage banking

In the speech 'Mortgage banking' given on 26 September Alan Greenspan of the Federal Reserve said though mortgage debt is rising, most Americans have built up so much equity in their homes that they could weather a price drop without serious harm.

"The vast majority of homeowners have a sizable equity cushion with which to absorb a potential decline in house prices," Greenspan told the American Bankers Association.

Greenspan said some regions may be seeing unsustainable price gains. But added that

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