Alan Greenspan warns of UK house prices drop (to make the drop more likely)

'Alan Greenspan, the former head of America's central bank, the Federal Reserve, issues the prediction in an exclusive interview with The Daily Telegraph today. He warns of "difficulties" ahead for UK home owners, as rising interest rates bring house price growth to a shuddering halt. The warning comes only days after the Bank of England was forced to bail out the mortgage lender Northern Rock, amid the escalating credit crunch in the City and markets around the world.'

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Greenspan warns of US house prices drop (to make the drop more likely)

'US house prices are likely to fall significantly from their present levels, Alan Greenspan has told the Financial Times, admitting that there was a bubble in the US housing market. In an interview ahead of the release on Monday of his widely-anticipated memoirs, the former chairman of the Federal Reserve said the decline in house prices “is going to be larger than most people expect”.'

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