greenspan

Greenspan expects some spillover from subprime mortgages

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Last Update: 2:29 PM ET Mar 15, 2007

WASHINGTON (MarketWatch) -- Former Federal Reserve Chairman Alan Greenspan said he expects to see some spillover from the subprime mortgage meltdown into the broader economy if home prices fall, according to media reports. Speaking to a fixed-income industry group in Florida, Greenspan said the turmoil in the subprime market is no small matter. So far, there has been little impact on consumption, but he noted problems in collateralized-debt markets have already surfaced. "If prices go down, we will have problems -- problems in the sense of spillover to other areas," he said.