Former Federal Reserve Chairman Alan Greenspan has been criticized for his assertion in May 2005 that real estate markets were suffering only from a little froth and that rising home prices would be forced to simmer down as properties became unaffordable. Despite all the attention that subprime and so-called affordability loans have gotten for fueling the housing boom, the national home-ownership rate had already peaked by the time these products took off in 2004, according to the Joint Center for Housing Studies. America's economy has righted itself in the past after going through deeper difficulties than now. Since hitting a low point in 2005, home-buyer affordability has shot up about 35%, says Wells Capital's James Paulsen.
Pages to are hidden for
"Beyond the Froth"Please download to view full document